Flex said in a statement on Thursday it had agreed with the charterer of Flex Courageous and Flex Resolute, a supermajor, to amend the existing time charter agreements for the two LNG carriers.
UK-based energy giant BP is the charterer of the 2019-built 173,400-cbm, Flex Courageous, and the 2020-built 173,400-cbm, Flex Resolute.
According to Flex, the parties have agreed a new firm period from 2029 to 2032 which may be extended by an additional seven years in total until 2039.
As reported in November 2021, Flex LNG and the charterer then agreed TCs for the two ships with commencement during the first quarter of 2022 where the firm period was three years for each of the LNG carriers and where the charterer could extend each ship by two additional two-year periods.
In the event both extension options are declared, the period would thus increase to seven years under each of the TCs i.e. the TCs have a contract structure of 3 years firm plus 2+2 optional years, Flex said.
As further announced in January and February this year, the charterer declared the first two-year options to extend the firm period for the ships from the first quarter of 2025 until the first quarter of 2027, Flex noted.
Hence, the charterer currently has remaining options to extend the period for each ship by another two-year period until first quarter of 2029. These two options are declarable in the first quarter of 2026, Flex said.
Under the amended TC for both ships, the charterer has added a minimum three-year firm period from 2029 until 2032.
Options
At the same time, the charterer has the option to extend each TC by three additional periods consisting of two periods of each two years while the last period is for three years, Flex said.
Hence, the parties have agreed to add an additional contract structure of 3-year firm plus 2+2+3-optional years to the existing TCs from 2029 onwards.
In the event, the charterer utilizes all its new extension options, the redelivery of the ships will be 2039, Flex said.
The new firm periods, with associated options, are agreed regardless of whether the charterer declares the last existing extension option from 2027 to 2029 for the two ships.
However, Flex finds it likely that this extension option will also be utilized given the new firm period from 2029.
