Awilco to get $4.9 million in compensation over LNG carrier collision

Norway-based shipping firm Awilco LNG has agreed a final settlement over a collision of its LNG carrier WilForce with a bulk carrier that took place off Singapore in May 2019.

The owner of two 156,000-cbm TFDE LNG carriers announced on Tuesday a full and final settlement agreement between owners and insurance companies on both sides.

According to the settlement agreement, the company will receive about $4.9 million as
full and final compensation for cost and lost time following the collision, it said.

“As no effects of this claim have been reflected in Awilco LNG’s financial statements the compensation received will be booked as income in the fourth quarter of 2023,” Awilco said.

Awilco said in May last year that it has received the judgement on liability on the case involving WilForce.

A UK court based in London said that the 2019-built bulk carrier Western Moscow, owned by Ratu Shipping, was mainly responsible for a crash with Awilco’s carrier WilForce that took place off Singapore in May 2019.

The court found that the bulker has caused the accident and appointed 75:25 liability and cost of the case.

Also, the combined claims for the damage caused by the collision are in the region of about $17.6 million, the ruling said.

Awilco recently signed a term sheet with an Asian leasing firm to refinance both of the company’s 2013-built LNG carriers, WilForce and WilPride.

The firm expects the transaction to close in the first half of 2024.

VesselsValue data suggest that the current market value of WilForce is about $155 million and WilPride about $157 million.

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