> News Release > 2010 > Taiyo Oil signs Contract of Affreightment for transportation of crude oil by the Very Large Crude Carrier (VLCC) fleet

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Taiyo Oil signs Contract of Affreightment for transportation of crude oil by the Very Large Crude Carrier (VLCC) fleet

Taiyo Oil has concluded a Contract of Affreightment ("COA" hereinafter) with Mitsui OSK Lines, Ltd., for transportation of crude oil by the Very Large Crude Carrier ("VLCC" hereinafter) fleet.

Contract summary

1. Period Three years from April 2010 (Taiyo Oil has multi-year extension options)
2. Number of voyages 10-12 voyages per year
3. VLCCs to be deployed under the contract M/T "Orion Trader" (built in 1998, 267,000 dwt) and M/T "Ohminesan" (built in 1996, 267,000 dwt), among others
4. Main route Between the Middle East (the Red Sea) and Kikuma

Purpose

In October 2002, Shikoku Operations (located in Kikuma-cho, Imabari City, Ehime Prefecture) expanded the capacity of its berth. Since then, taking advantage of shipment of Middle East crude oil (loaded in the Red Sea region) by VLCC, we have established an efficient distribution system.

On this occasion, in view of the COA for transportation of crude oil by VLCC concluded with other shipping companies being due to expire in March this year, and in order to ensure that transportation of crude oil continues in a stable and cost-competitive manner, we have concluded a COA for transportation of crude oil mainly by two (2) VLCCs (both double-hulled) operated by Mitsui OSK Lines, Ltd.