Page 71: of Maritime Reporter Magazine (February 1999)

SHIP REPAIR & CONVERSION

HYPACK for WINDOWS

Shell Commits To Yard In Repair Arrangement

Shell International Trading and

Shipping (Stasco), one of the U.K.'s major tanker operators, has signed an Evergreen Alliance Agreement with Sembawang Shipyard, one of

Singapore's big three repair yards, committing the repair and mainte- nance of Shell's Far East fleet for the foreseeable future. The agree- ment was signed over the

Christmas period at Shell Mex by

Heng Chiang Gnee, Managing

Director of Sembawang Shipyard.

The agreement is the first time that Shell has committed itself to one shipyard for general repairs operations, previously repairing ships on a ship-by-ship basis with yards in both the Far East and

Middle East. Other major compa- nies to have signed this type of agreement include Chevron with

Jurong Shipyard Ltd. and

Portugal's Lisnave, which was signed some five years ago.

A spokesman for Shell said, "The decision to sign an Evergreen

Alliance Agreement with

Sembawang followed a detailed mapping of the fleet's trading pat- terns, the objective being to increase productivity in refitting

Shell-owned and managed tankers. We are also looking to sign a similar agreement with a yard in Europe for those ships in the Shell fleet trading in the north- ern-southern European area. The agreement has been designated 'Evergreen' as there is no definite date of completion, the agreement also being non-exclusive as we have to reserve the right to dry- dock tankers in the Shell fleet at other yards in case of emergency. "Shipyards in Singapore were contracted but Sembawang, where many of the Shell fleet have been drydocked over recent years, were able to demonstrate the response most aligned with Shell's objec- tives. It is likely that some six to eight tankers will be due for sched- uled drydockings during 1999.

There is one tanker, the 46,851- dwt Hatasia currently under repair at Sembawang, and many of the initiatives in the new alliance, especially involving health, safety and the environment, which is a joint Shell/Sembawang document, will be initiated."

Heng Chiang Gnee added: "The shipyard will benefit from lower internal repair cost from economies of scale and operational efficiency from better forward planning of the committed work.

We see this as the future direction for shipyards to develop long-term goals and working closely with alliance companies to meet higher quality and service standards.

Sembawang is excited by the chal- lenges which this alliance brings."

Apart from the Shell contract,

Sembawang is currently involved in two FPSO contracts, one involv- ing the outfitting of the newbuild- ing Northern Endeavour, which will be operated by Australia's

Woodside Petroleum, and the for- mer VLCC Proster 11, which is being converted for Monaco's

Single Buoy Moorings (SBM).

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