Euronav, a Belgium-based shipping company, has announced that they are selling one of their very large crude carriers (VLCC) for conversion into a floating production, storage, and offloading (FPSO) vessel. The ship in question is the Alsace, a 299,999 deadweight tonnage (dwt) vessel built by Samsung in 2012. Euronav has struck a deal with a subsidiary of Total Energies for this conversion.
The estimated value of the Alsace is around $72.5 million, and Euronav expects to make a profit of $27.5 million from this transaction. The ship is set to leave the fleet in the first quarter of 2025. While details about where the converted VLCC will be deployed were not disclosed, it is worth noting that Total Energies, along with partners Petronas and Sonangol, recently made a final investment decision on the Kaminho deepwater project in Angola, which will also feature an FPSO unit converted from a VLCC.
This sale is part of Euronav’s strategy to optimize its fleet and operations. Earlier this year, the company sold and delivered three other VLCCs, namely the Nectar, Noble, and Newton, resulting in a profit of $79 million. Additionally, Euronav has secured three long-term charter deals worth a total of approximately $161 million. One of their newbuild Suezmax vessels has been chartered for five years, starting in the third quarter of this year.
Furthermore, Euronav has chartered out the 2009-built Suezmax vessel, Fraternity, for two years. While there were reports of its sale to NGM Energy of Greece for $51 million, this has not been confirmed by Euronav. The company has also secured a long-term charter for one of its chemical tankers, which is set to be delivered in 2027. Chilean operator Ultratank will charter the vessel for seven years. Additionally, Ultratank has agreed to take another sister vessel under commercial management upon its delivery in the fourth quarter of 2025.
Euronav, with a reported year-to-date profit of nearly $680 million and a backlog of $2.06 billion, is undergoing a rebranding effort. After more than 25 years, the company will officially change its name to CMB.TECH in October. This rebranding reflects the company’s evolution and commitment to technological innovation in the maritime industry.