International Shipping Services

SG Holdings Limited is into international shipping with nine marine and ocean going crude oil tankers running across Europe, Asia, Africa and the USA. We invest in Suezmax crude oil carriers designed for transporting crude oil globally. Specifically, the ship size is between 140,000 and 165,000 metric tons with a storage capacity of one million oil barrels.

The strategic importance of this is that these are crude oil carriers that transport crude oil from the Middle East, West Africa, the North Sea and other loading terminals to destinations in the United States, Mediterranean Europe, Asia and others. No other Nigerian trading company has these huge assets.

In our shipping business, we adopted a firm contract model that guarantees earnings in an assured manner and with the responsible parties. The contracts are firm, well defined and payment dates are also known. The counterparties are international oil companies and global shipping players that are well respected across the globe. The current charter parties are BP, Shell UK, Litasco, and Union Maritime, with international and global technical service managers such as Atlantis (UK), Clarksons Shipping (UK), and Alpha Shipping (Istanbul) managing the assets.

We also engage the services of responsible commercial managers such as NAVIG8 Shipping (UK) and Clarksons Shipping to secure IOC businesses for our vessels. The brokerage and business development cost we incur through this process has created significant value.

The type of vessels we invested in is Suezmax crude oil carriers. Even after a long useful life, residual value can still be realised through international shipping markets, and scrap value can be determined via the tonnage model. We don’t invest in specialised assets that can only be used for a particular trade or transaction. The vessels are drydocked regularly as and when due to ensure the value is maintained, and we engage the services of international shipping companies and dockyards to handle this delicate assignment.