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Petrogress sets up subsidiary to operate Limassol port facility
on: November 10, 2017In: Companies, Contract/Tender, Cyprus, Investment, Limassol, Oil/Petroleum, Petrogress
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Limassol, Cyprus (PortSEurope) November 10, 2017 – Petrogress, Inc. is to set up PG Cypyard & Offshore Service Terminal Ltd. (Cypyard) to operate and manage ports in Hellenic Cyprus including Limassol. Arrangements will be negotiated with the Cyprus Ports Authority (CPA).
In June 2017 the company entered into a Memorandum of Understanding with F & T Investments, Ltd., a Cyprus company. The parties agreed to open a due diligence channel in furtherance of a future partnership or other combination to assist in a significant renovation of the F & T Shipyard in Limassol, Cyprus, and a joint facilities management and marketing agreement.
Petrogress has now withdrawn from this MOU with F&T Shipyards.
F & T has managed operations of the Shipyard in the New Port of Limassol, the sole commercial port facility in Cyprus, for over 30 years, providing ship repair services, offshore rig construction, oil field services and shipyard support. The Shipyard is complete with a floating dry dock, private berthing facilities, machine shop and covered workspaces. F & T and Petrogress studied expansion of the Limassol Shipyard to significantly expand these facilities to provide services and support to the Aphrodite and Leviathan Gas Fields off the Cypriot and Israeli coasts, and other offshore development and production projects in the Cyprus Exclusive Economic Zone.
Current plans include a long-term lease with renewal options covering all in-place port facilities, including floating dock and dry dock areas, with cranes and scaffolding, construction and repair workshops and storage, and complete on-site administrative and office space.
Cypyard will negotiate and pay-off debt from a previous operator and agree to cover the costs of deferred maintenance and repairs along with designated improvements in exchange for lease rate concessions.
Per President Christos P. Traios, “We can make a better deal directly with the CPA for the facilities at Limassol. The facilities are in fairly good shape and won’t take much time or money to put right. In addition, we can add other port services agreements along the coast in Hellenic Cyprus if and when offshore services require. I think the opportunities there are great, and dealing directly with partners in government has numerous benefits.”
Cyprus can and should play a key role in the European Union’s energy security. Cyprus EEZ is contained within the Levantine Deep Marine Basin, with confirmed reserves of approximately 2,000 billion cubic metres of gas, and ongoing exploration activities constantly adding to these reserves. Apart from its role as a producer, Cyprus is located at the cross-roads of sea lanes and probable pipeline routes connecting Europe and the Middle East, and should become a regional hub for E&P and transmission activities.
Recent developments have attracted worldwide interest and significant investments from energy giants including Noble Energy, DELEK, TOTAL, Chevron, ExxonMobil, ENI and KOGAS. The New Port of Limassol is well-positioned to serve marine construction, transport and offshore service needs for exploration and production activities throughout the East Mediterranean.
Petrogress, Inc. owns and operates a fleet of tankers from its base in the Greek port of Piraeus through a series of Marshall Islands subsidiaries. Currently, the company’s ships trade-off the coast of West Africa, transporting crude oil, distillates and refined products.
Source: Petrogress
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