Capital Product Partners L.P. announced that it had reached agreement with BP Shipping Limited to extend two of its existing time charters. The time charters for two of the Partnership’s 37,000 dwt, 2006 built, MR product tankers, the Agisilaos and the Arionas, have been extended by 13 months to March and June 2010, respectively, both at a base gross rate of $20,000 (net rate $19,750) per day. The base gross rate for the Agisilaos and the Arionas prior to the expiration of their existing charters is set at $17,721 (net rate $17,500) per day and $19,240 (net rate $19,000) per day, respectively. Both time charters will also continue to be subject to the same profit sharing arrangement they are currently under which is calculated and settled quarterly and which allows each party to share additional revenues above the base rate on a 50/50 basis until their expiration.
Ioannis Lazaridis, Chief Executive and Chief Financial Officer of Capital Product Partners’ general partner, said, “We are pleased to continue our successful relationship with BP Shipping Limited and to extend our time charters at a higher rate than what the vessels will be earning when their current charters expire.”