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Sun 18 Dec 2016 10:36 AM

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Dubai's Gulf Navigation strikes deal to acquire, lease oil tankers

Deal is further step in firm’s strategic expansion process, says group CEO

Dubai's Gulf Navigation strikes deal to acquire, lease oil tankers
Image for illustrative purpose only. (Atta Kenare/AFP/Getty Images)

Dubai-based shipping firm Gulf Navigation will order or acquire up to 12 crude and petroleum-carrying vessels to be chartered to Mena Energy, it was announced on Saturday.

The company said the vessels would range between 50,000 and 120,000 metric ‘deadweight tonnage’, Emirates News Agency (WAM) said.

Khamis Juma Buamim, group CEO of Gulf Navigation, said the deal was “another step forward in its strategic business expansion process”.

Last year, the company said it would issue $60 million of convertible bonds in an attempt to ease pressure from its creditors, while auditor PwC warned that the group’s liabilities had cast doubt on its abilities to continue as a going concern.

Earlier this month, the company announced a joint venture with China’s Wuchang Shipbuilding Industry Group and Qingdao Beihai Shipbuilding Heavy Industry to expand operations in the northern emirates.

In April, it was reportedly in the process of negotiating a settlement for $35 million (AED128.45m) of debt this year.

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