Otto Marine enters into charter agreement with Femco
By Mok Fei Fei, Channel NewsAsia | Posted: 24 November 2009 1410 hrs

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SINGAPORE: Mainboard-listed offshore marine group Otto Marine said on Tuesday that it has entered into two bareboat charter agreements with Femco Holdings.

The vessel Hull 7045 will be leased to Femco for 86 months, while the vessel Hull 7046 will be leased for 84 months.

Femco has an obligation to purchase the vessels at the end of charter period. Moreover, it will have the option to re-flag the vessels to Russian Flag on the basis of bareboat charter registry at any time during the charter period.

Otto Marine expects to deliver the vessels from the shipyard in Batam on December 15 and April 15 next year.

The company said the charters are not expected to have a material effect on its net earnings for the current financial year ending in December.

The financial details of the deal were not made known in the filing to the Singapore Exchange.

- CNA/sc