John Fredriksen-backed Flex LNG has signed a deal which adds up to 10 more years to the charters for the 173,400 cu m Flex Resolute and the Flex Courageous LNG carriers.
The two LNG carriers were initially fixed on a three-year time charter in November 2021, both of which were extended this year by two years until 2027. The start of the time charter for the vessels was February 2022.
After the extensions, the charterer had a final option to extend the charter for both vessels by another two years until 2029. These options are declarable in the first quarter of 2026. Flex LNG did not name the charterer and described it only as a ‘supermajor’ but VesselsValue data states that the charterer is BP.
Under the amended time charter for both ships, a minimum three-year firm period has been added which will last from 2029 until 2032.
BP has the option to extend each time charter by three additional periods. The first two periods are for two years while the last period is for three years. The firm three years and the extensions will be added to the existing time charters from 2029 onwards. If all new extension options are exercised the redelivery of the ships will be 2039.
The new firm periods, with associated options, are valid regardless of whether the charterer declares the last existing extension option from 2027 to 2029. Flex LNG did state that the final option is likely to be utilised considering the new firm period from 2029.
“This extension fits with our communicated strategy of fixing our ships for longer duration at higher rates,” said Øystein Kalleklev, CEO of Flex LNG.
