As part of Neste Oil’s plan to exit the shipping business, the Finnish oil refining and marketing firm has reached an agreement this week with Norway-based OSM Group to transfer the ship management functions of Neste Shipping to OSM.
Under the agreement, Neste notes on their website:
“OSM will set up a subsidiary in Finland responsible for the crewing and maintenance of vessels previously under the management by Neste Shipping that continue to be used by Neste Oil. The intention is to transfer the shore and seagoing personnel currently employed by Neste Shipping’s ship management functions to OSM’s new Finnish subsidiary during spring 2014. Neste Shipping’s ship management functions currently employ around 300 people at sea and 17 people on shore.
Neste Shipping’s chartering functions will be retained and integrated to the Neste Oil organization.”
The dismantling of Neste Shipping is due to Neste Oil’s “desire to reinforce its focus on developing its core business based on cleaner traffic solutions.” In addition to outsourcing the ship management functions, the company plans to sell its vessels to companies jointly owned by Finland’s National Emergency Supply Agency and the Ilmarinen Mutual Pension Insurance Company, from which it will charter them back on long-term agreements.