Ocnus.Net
News Before It's News
About us | Ocnus? |

Front Page 
 
 Africa
 
 Analyses
 
 Business
 
 Dark Side
 
 Defence & Arms
 
 Dysfunctions
 
 Editorial
 
 International
 
 Labour
 
 Light Side
 
 Research
Search

Business Last Updated: Jun 15, 2009 - 7:46:17 AM


How Lurssen Wooed Brunei
By Intelligence Online 04/06/2009
Jun 15, 2009 - 7:44:53 AM

Email this article
 Printer friendly page
Like car owners, governments insist that somebody take old equipment off their hands before buying new armaments. Complicated to set up, such deals nonetheless help suppliers to win contracts. The three Offshore Patrol Vessels (OPVs) that Germany’s Lurssen yard is about to deliver to the Royal Brunei Navy were sold in return for the Germans helping Brunei get rid of three slightly older ships. Brunei initially contracted Britain’s GEC-Marconi in 1998 to deliver three OPVs. Bought out by BAE Systems Surface Fleet Solutions, GEC delivered the Nakhoda Ragam in 2003 and the Bendahara Sakam and Jerambak in 2004. The three patrol boats were equipped with VL Seawolf and MM40 Exocet Block 2 missiles made by MBDA. But Brunei refused to take delivery of the vessels on the grounds they didn’t correspond to specifications that had been negotiated with the British group. Lurssen then stepped in to offer to take them off Brunei’s hands and re-sell them in return for a contract with Brunei for a similar number of ships. Through its affiliate Global Naval Systems, Lurssen offered the British-built patrol vessels to several Gulf countries but didn’t find buyers. Finally, it got Algeria to acquire them last year. The proceeds from the sale of GEC’s ships to Algeria will be partly deducted from the price of the three new vessels for Brunei.

Like car owners, governments insist that somebody take old equipment off their hands before buying new armaments. Complicated to set up, such deals nonetheless help suppliers to win contracts. The three Offshore Patrol Vessels (OPVs) that Germany’s Lurssen yard is about to deliver to the Royal Brunei Navy were sold in return for the Germans helping Brunei get rid of three slightly older ships. Brunei initially contracted Britain’s GEC-Marconi in 1998 to deliver three OPVs. Bought out by BAE Systems Surface Fleet Solutions, GEC delivered the Nakhoda Ragam in 2003 and the Bendahara Sakam and Jerambak in 2004. The three patrol boats were equipped with VL Seawolf and MM40 Exocet Block 2 missiles made by MBDA. But Brunei refused to take delivery of the vessels on the grounds they didn’t correspond to specifications that had been negotiated with the British group. Lurssen then stepped in to offer to take them off Brunei’s hands and re-sell them in return for a contract with Brunei for a similar number of ships. Through its affiliate Global Naval Systems, Lurssen offered the British-built patrol vessels to several Gulf countries but didn’t find buyers. Finally, it got Algeria to acquire them last year. The proceeds from the sale of GEC’s ships to Algeria will be partly deducted from the price of the three new vessels for Brunei.

Source:Ocnus.net 2009

Top of Page

Business
Latest Headlines
Switzerland: Tax Breaks For Rich Foreigners Under Fire
Israeli Partners Sign Bid to Sell Natural Gas to Egyptian Firm
Russia Rating Cut by Moodys on Sluggish Economic Growth
Indian Economy to Overtake Chinese
Russia Eyes Shrinking Cash Reserves as Fight for Ruble Escalates
Britain Reported to Block $6.5 Billion Russian Energy Deal
Sur le budget, Matteo Renzi defie Bruxelles
Chinase Economy Slides and Capital Flees
Global Copper Market to Swing to Surplus in 2015 for First Time in 5 Years
World Economy So Damaged It May Need Permanent QE