Swan Group leases out vessel to Turkey govt company for Rs 800 cr

Swan Energy through its subsidiary Triumph Offshore has signed an agreement to lease out its floating storage regasification unit (FSRU) vessel to Turkish government-owned natural gas and LNG firm Botas for an annual rentals of around Rs 800 crore.

The lease arrangement is for a daily rental of USD 250,000, or about Rs 2 crore, which on an annualised basis works out to be around Rs 800 crore, Swan Energy said in a statement on Thursday.

The duration of the leasing agreement of its FSRU vessel Vasant One is for 12 months and is extendable on mutual agreement, it added.

Based on the bare boat charter, Triumph Offshore has leased out only the bare FSRU vessel to Botas which will manage all operational expenses, including fuel, crew, insurance, maintenance, and repair and thus fully revenue accretive.

Rishi Chopra, spokesperson of Swan Energy, said the agreement will enhance the rental earning capabilities of the vessel and therefore the net revenue from the rental will strengthen our profitability position.

The city-based Swan Group has been into textiles, real estate and oil & gas sectors for nearly a century.