The oil tanker company Nordic American Tankers Limited has concluded two six-year time charters for its two Suezmax newbuildings set for delivery in May and June.

The Bermudian-based company said the contracts are with Asyad Shipping Company in Oman and will commence upon delivery of the two NAT Suezmaxes from the shipyard in South Korea.

NAT said the time charter rates concluded will secure a stable revenue stream over the six years, and generate aggregate revenue of more than $100 million during these charters.

The cumulative cash flow, after operating expenses, from these contracts will equal in excess of 60 per cent of the original price of the vessels.

Thanks to the quality of its fleet and its maintenance schedules, the NAT Suezmaxes are able to operate efficiently for more than 25 years, the company said.

Asyad Shipping is owned by the government of the Sultanate of Oman through Asyad Group SAOC. It owns and operates a diversified fleet of about 70 ships.

Herbjorn Hansson, founder, chairman and CEO of NAT, said: “Our business is expanding in the Middle East, which is an important area for our operations. We regard this co-operation with Oman interests as a substantial step forward to cementing and building out our position in the area. This may only be the beginning.”