RUS

Sovcomflot, NOVATEK and Far Eastern Shipbuilding and Ship Repair Center sign agreement to develop ship repair cluster in the Russia’s Far East

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On 1 September 2021, PAO Sovcomflot, SMART LNG (a joint venture between PAO Sovcomflot and PAO NOVATEK) and Far Eastern Shipbuilding and Ship Repair Center (FESRC, a subsidiary of Rosneft) entered into a trilateral agreement to cooperate on the development of a ship repair cluster in the Russia’s Far East.

The signing ceremony took place on the eve of the VI Eastern Economic Forum as part of a trilateral workshop at the Zvezda Shipbuilding Complex (Primorsky Region).

The agreement was signed by: Andrey Shishkin, CEO of FESRC and Vice-President for Energy, Localisation and Innovation of Rosneft; Igor Tonkovidov, President and Chief Executive Officer of Sovcomflot, and Sergey Frank, Chairman of the Board of Directors of SMART LNG.

The agreement pertains to the expansion of cooperation between the parties on servicing and repairing vessels and vessel equipment using ship repair cluster’s facilities.

Cooperation between Sovcomflot, Russian energy companies and financial institutions made it possible to localise new civilian shipbuilding technologies in Russia and create the country's first serial production of modern large-capacity cargo vessels, based at Zvezda. This will serve as the foundation for the further development of a shipbuilding and ship repair cluster in the Russia’s Far East.

The same day at Zvezda, a keel-laying ceremony was held for a new 51,000-dwt MR product carrier ordered by SCF to transport gas condensate in the Baltic under a 20-year time charter to NOVATEK. The vessel is designed to use LNG as its primary fuel, which will enable a reduction in vessel emissions. In total, three such tankers have been ordered by SCF from Zvezda, scheduled for delivery in 2022–2023.

SCF Press Office

PAO Sovcomflot (MOEX:FLOT) is one of the world's leading energy shipping companies, specialising in the transportation of crude oil, petroleum products, and liquefied gas, as well as the servicing of offshore oil and gas production. As of the date of this release, the Group’s fleet comprises 137 vessels with a total deadweight of over 11.8 million tonnes, including vessels owned through joint ventures. More than 80 vessels have an ice class.

SCF is involved in servicing large oil and gas projects in Russia and around the world: Sakhalin-1; Sakhalin-2; Varandey; Prirazlomnoye; Novy Port; Yamal LNG, and Tangguh (Indonesia). The Group is headquartered in St. Petersburg, with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, and Dubai.

FESRC affiliates include the Zvezda Shipbuilding Complex, where SCF and SMART LNG have placed orders to construct 20 modern large-capacity vessels with a total deadweight of 1.85 million tonnes at a total cost of over USD 5 billion. These include five LNG-fueled tankers (owned by SCF) and 15 new-generation icebreaking LNG carriers for the Arctic LNG 2 project (the lead vessel of the series is owned by SCF, while the remaining 14 vessels are owned by SMART LNG). The delivery of the vessels and start of their operation have been scheduled for 2022-2025.