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The Seychelles Petroleum Company (SEYPEC) will replace two out of its four medium-range tankers with new and more advanced ships in the coming years, said a top official.

This follows the approval by the Cabinet of Ministers last Wednesday of the SEYPEC's strategic plan to replace its aging tanker fleet with new, technologically advanced vessels.

The SEYPEC chief executive, Sarah Romain, told С���� that SEYPEC will be selling its four vessels in a phased approach and undertaking arrangements to purchase two new ones. 

“Next year, two of our tankers will turn 20 years old and for most charterers that transport oil, they tend to avoid using older tankers beyond 20 years, as they are not as efficient as newer ones, which is why we want to replace these vessels, to ensure that can maintain our operations in the premium market with key charterers globally,” said Romain. 

She explained that older vessels are less reliable, burn more fuel, have a higher operational cost and have a higher carbon footprint which means that by getting newer tankers, our operations will be more profitable. 

Romain explained that the four tankers will be sold in phases. The Seychelles Pioneer will be disposed of this year, followed by Seychelles Progress in January 2025, while the other two, Seychelles Prelude and Seychelles Patriot, will be replaced by December 2026.

"The two new vessels are expected to be delivered in January and April 2027," confirmed the chief financial officer of SEYPEC, Francis Racombo.

This means SEYPEC will have only two tankers operating internationally, with the smaller Seychelles Paradise, remaining operational within the region and Seychelles' waters.

These new tankers will be more efficient firstly, where it can use two types of fuel, such as methanol, which is a greener fuel, that can potentially emit less carbon,” she said,

Romain said that with current EU regulations, the tankers are fined for their emissions, which can potentially reach up to $2 million per vessel. 

SEYPEC’s tankers are currently managed by German Tanker Ship (GTS), which is the ship management company that employs staff, looks for contracts and maintains the ships. The tankers are added to the pool of tankers owned by GTS to provide a broad platform for career opportunities and progression for the Seychellois seafarers. 

There are over 100 Seychellois currently employed with GTS, not only on SEYPEC's tankers but also on GTS vessels.  

"On our tankers themselves, there are over 50 percent Seychellois working on them, with the rest being foreigners," Romain said.

According to SEYPEC’s CEO, the tankers have been performing very well, with the fleet earning $18.5 million from January to May of 2024, which amounts to an operational profit of $7.5 million. 

NB: Amended 4 pm.