KOTUG Australia and Teekay Shipping Australia Pty Ltd. have reached a deal to reshape KT Maritime Services Australia Pty Ltd. (KTM) from a 50/50 joint venture to a full subsidiary of the KOTUG group.
KTM was incorporated in 2012 to serve the Australian towage market. Now, after several years of working with KOTUG to establish this business, Teekay will exit KTM to focus on its Australian ship management, crewing and consultancy businesses.
The deal received unanimous approval from the boards of both parent companies and was executed in the first week of April 2018. The transition is scheduled to be finalized on July 1, 2018. Both companies will work together during a transition period to restructure the new company setup.
KTM provides all towage operations for Shell’s Prelude FLNG, as well as towage assistance at ConocoPhillips’ Bayu Undan FSO, for which it employs four Infield Support Vessels (ISVs). All vessels are owned by the KOTUG group.
Teekay’s Executive Vice President, Strategic Development, William Hung, said, “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. With the start-up of KTM’s contracts with Shell and ConocoPhillips, we believe this is the right time for Teekay to refocus on our core Australian business.”
Commenting on the deal, KOTUG’s CEO Ard-Jan Kooren, said, “We thank Teekay for the professional and pleasant cooperation in 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.”