Tsakos Energy Navigation (TEN), a publicly traded company on the New York Stock Exchange (NYSE) and owned by Dr. Nikos Tsakos, has struck an iconic deal that has garnered international attention. This deal involves the construction of nine DP2 Suezmax Shuttle tankers, along with 15-year employment contracts for Petrobras Transporte S.A. (Transpetro), Brazil’s largest oil and gas transportation company.

This is a monumental agreement in the maritime industry, especially considering Transpetro is the biggest player in Brazil’s oil and gas transportation sector. The total gross revenue from this deal is expected to reach $2 billion.

Shuttle tankers are specialized vessels designed for loading from offshore facilities or larger ships unable to reach their destinations due to draft limitations. International maritime and financial analysts have described the deal as a “next-level” move for TEN, positioning the company to significantly raise the bar for competition in the industry, and, by extension, boosting the standing of Greek-owned shipping.

The construction cost is $1.3 billion, with each tanker priced at $146.5 million. Delivery is scheduled for 2027 and 2028, with construction taking place at Samsung Heavy Industries Co. Ltd. shipyards in South Korea. The charter will be on a bareboat basis, with Transpetro assuming all operational and technical costs for the vessels during the agreed-upon employment period.

The maritime and financial sectors were surprised that a single owner secured the entire order from just one shipyard. Several other shipowners, including Greeks, and shipyards had competed for a share of the deal. Tsakos’ group was the first to enter the Shuttle tanker market 15 years ago, and their specialized work in this field, along with their dedicated training center, was key to securing the Petrobras contract. Four of TEN’s existing Shuttle tankers already have long-term charters in Brazil.

According to TEN’s most recent annual report, Petrobras is one of the company’s largest traditional clients, along with Exxon, Equinor, Total, Chevron, and BP, who together represent 70% of the company’s annual revenue.

TEN is already building three DP2 Shuttle tankers there, all with long-term contracts with major oil companies, with deliveries set for 2025 and 2026, followed by more in 2027 and 2028. With the nine new vessels, TEN’s fleet will include a total of 16 DP2 Suezmax Shuttle tankers, making it one of the largest owners of such vessels globally. TEN already has four DP2 tankers in operation, with three more under construction and nine more from the recent deal.

As TEN’s president, George Saroglou, stated, “The nine DP2 Suezmax Shuttle tankers announced, combined with the four that are already operational and the three under construction, make TEN one of the largest operators of DP2 Suezmax Shuttle tankers.”

“While we move forward with the construction of these nine new vessels, we look forward to receiving the three Shuttle tankers already under construction and solidifying TEN’s position as the preferred company for the long-term needs of the world’s leading oil companies. TEN’s fleet employment strategy has proven to be highly effective, providing steady liquidity, predictability, and the ability to capitalize on opportunities quickly, while also ensuring we can reward our shareholders with healthy dividends, regardless of market conditions.”

Over the years, TEN has targeted milestone opportunities for the construction of modern vessels that offer competitive advantages, establishing itself as one of the largest, most diversified, and flexible energy transporters in the world.

In October of last year, TEN received a significant recognition, being named the top tanker management company of the year. This success is even more notable considering the heavy competition from other industry giants, including Teekay Tankers, AET, ADNOC, Frontline, and DHT Holdings. The award was presented at the Tanker Shipping and Trade Awards 2024 in London.

Financial and maritime analysts have described the deal as a “next-level” move for TEN, which has raised the competition bar to new heights, while also elevating Greek-owned shipping on the global stage.

Caption for Main Photo: Dr. Nikos Tsakos signs the agreement at the Tsakos Group offices in Megaro Macedonia.