TEEKAY Shipping Australia is to exit its 50/50 joint venture with Kotug Australia, making KT Maritime Services Australia (KTM) a full subsidiary of the Kotug Group.
Teekay is exiting KTM to focus on its core Australian ship management, crewing and consultancy businesses, according to a statement from Kotug.
KTM was incorporated in 2012, provides all towage operations for Shell’s Prelude FLNG, as well as towage assistance at ConocoPhillips’ Bayu Undan FSO, for which it uses four Infield Support Vessels. All vessels are owned by the Kotug group.
The transaction between Teekay and Kotug was unanimously approved by the boards of both companies and was executed in the first week of April, with finalisation of the transaction slated for 1 July of this year.
Kotug CEO Ard-Jan Kooren thanked Teekay for the “professional and pleasant” co-operation over the past years.
“Together with our motivated office staff and crew, and with our existing Australian port towage business and the Emergency Towing Vessel chartered out to the Australian Maritime Safety Authority, we are capable to drive the business to the next level,” he said.
Teekay executive vice-president strategic development William Hung said with the start-up of KTM’s contracts with Shell and ConocoPhillips, this is the right time for Teekay to refocus on its core Australian business.
“Given Kotug’s long international history of tug operations and ownership of the four vessels servicing KTM’s existing business, the transition to full ownership by KOTUG will simplify KTM’s governance and operating structure,” he said.