Swan Energy Ltd (SEL), a diversified conglomerate with interests in oil and gas, textile and infrastructure businesses, through its subsidiary Triumph Offshore Pvt Ltd (TOPL), has signed an agreement to lease its Floating Storage Regasification Unit (FSRU) vessel named Vasant One to Botas, Turkey’s state-owned natural gas and LNG firm.
The lease arrangement generates a daily rental of $250,000 or about Rs 2 crore (as per the present exchange rate) for SEL. Annualised cash accruals from the agreement amount to approximately Rs 800 crore. The lease agreement for 12 months is extendable on mutual agreement.
Based on the Bare Boat Charter, only the bare FSRU vessel has been leased to Botas, which will manage the operational expenses, including fuel, crew, insurance, maintenance, and repair. “As a result, TOPL does not incur any operational expenses during the lease tenure. Such a lease arrangement implies that the lease rentals earned essentially add to the company’s EBITDA,” said a press release.
Swan Energy spokesperson Rishi Chopra, said, “The lease agreement will enhance the rent earning capabilities of the FSRU. The annual rental will strengthen the company’s profitability. By renting out the FSRU to Botas, we aim to play an enabling role in boosting the Turkish government’s LNG exploration initiatives, to build clean energy preparedness and meet the growing demand for FSRUs in that market.”