Milaha is in talks with United Arab Chemical Carriers (UACC) over a possible combination of their product and chemical shipping divisions

The diversified Qatari group and UAE-based chemical shipping company expect better returns and an improved market position from any merger.

According to its website, UACC has a fleet of 22 MR and LR1 product and chemical tankers, with the Milaha product tanker fleet totalling four vessels, with a further two owned LPG carriers used for ammonia.

Speaking to Seatrade in Doha recently, a senior Milaha executive stated that the company relaxed its search for acquisition targets in the tanker and offshore markets when the global oil price tumbled in 2014, choosing to wait and see how the change would impact offshore and shipping companies.

"The potential transaction remains subject to due diligence and corporate, regulatory and other necessary approvals," a Milaha-issued statement read.