U.S. News

UK's VT Signs 400 Million Pound Oman Ships Deal

By Reuters

British support services and shipbuilding company VT Group said it had signed a 400 million pound ($787.5 million) deal with the government of Oman to supply three ocean patrol vessels for Oman's Royal Navy.

"The programme is valued at around 400 million pounds over a five-year period, including initial support," VT said in a statement to the London Stock Exchange on Tuesday.

The first of the 100-metre-long (328-foot) ships will be delivered in early 2010, with the last due by early 2011.

These ships will be the most advanced of their type in the world when they are completed," said VT Group Chief Executive Paul Lester. "The programme will supplement our work on the (UK) Royal Navy's Type 45 destroyer and will ensure that our shipbuilding division has a very healthy workload for the next five years."

A spokesman said VT had been selected as preferred bidder last April and spent about six months finalising the deal.

VT shares were up 0.38% at 459-1/2 pence versus London's Mid 250 Index, which was down 0.4%.