Skaugen in sale and lease back deal with Teekay LNG on newbuildings

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

17 May 2008

I.M. Skaugen Group (IMSK) has entered into an agreement to sell two of our unique Multigas Carriers of 12,000 cbm size. The ships are currently under construction with Skaugen Marine Construction (SMC) in China and are expected to be delivered in the first and second quarter of 2010. These ships are capable of carrying LNG, LPG and Ethylene and will be sold at expected cost of about USD90 million. Teekay Corporation has agreed to takeover the existing shipbuilding contracts for these vessels from subsidiaries of IM Skaugen SE (IMS) as well as to provide the funding needed for the construction phase and Teekay LNG has agreed to acquire the vessels upon their delivery.
IMS will subsequently lease back these ships for 15 years from Teekay LNG and at a fixed-rate with three five year extension options without fixed price purchase option. The ships will enter the Norgas pool upon delivery. In total, the pioneering newbuilding programme comprises the construction of up to 16 ships for delivery between now and 2010. 12 of these ships have so far been confirmed with our subcontractors, suppliers and joint venture partners, two ships have already been delivered and two more will be delivered in 2008.
Skaugen Marine Construction (SMC) was established in the fall of 2006 to manage the IMS newbuilding process in China. On behalf of IMS, SMC has developed streamlined marine construction activities for the building of new gas carriers, and is responsible for all aspects of this programe, including the management of Chinese alliances and joint venture partnerships.

Source: I.M. Skaugen