Malaysia's Orkim Extends Charter Contracts with Shell to February 2027

en.Wedoany.com Reported - Orkim Berhad, a Malaysia-based owner and operator of CPP and LPG tankers, has extended its consecutive voyage charter contracts with Shell Malaysia Trading Sdn. Bhd. and Shell Timur Sdn. Bhd. by six months, with the renewed contracts now set to expire on February 15, 2027. The company's subsidiary, Orkim Reliance, signed supplemental agreements with the two charterers on August 13 in respect of each of the existing consecutive voyage charter contracts.

The initial one-year term of these contracts, as originally agreed, ran from August 16, 2024, to August 15, 2025, and included an option for renewal under the original contract terms. Upon the charterers exercising the renewal option, the contracts were extended by one year, with the expiry date adjusted to August 15, 2026. Under the newly signed supplemental agreements, both parties have further extended the contract term by six months, covering the window from August 16, 2026, to February 15, 2027.

Orkim Berhad stated that the contracts may also be further extended by the charterers at their option for three consecutive six-month periods, with the exercise of such option subject to the terms and conditions of the existing contracts. The contract value is based on "cargo nomination," whereby the charterers issue cargo nominations during the contract period in accordance with the rate schedule set forth in the contracts, and therefore no predetermined total contract value has been established.