South Korean Korea Line Corporation, part of Samra Midas Group, has placed an order for the construction of two very large crude carriers (VLCC) to support its last week’s charter deal with compatriot petroleum and refinery company S-Oil Corporation.
The 300,000 dwt VLCC pair has fetched a price of KRW 187 billion (USD 177.7 million) and is set for completion at the end of 2019.
The company did not disclose the name of the shipbuilder, however, according to Asiasis, Daewoo Shipbuilding and Marine Engineering (DSME) has been selected to construct the ships.
The charter contract, worth KRW 208.9 billion (USD 196 million), has the duration of five years and is set to start upon the vessels’ delivery.
The expected order comes in the wake of the company’s contract for the construction of two 300,000 dwt crude carriers with compatriot Hyundai Heavy Industries in March.
The USD 174.4 million worth ships are intended for the five-year contract for the transportation of crude oil between the Middle East and Korea for GS Caltex, set to start in 2020.
The latest order brings Korea Line’s orderbook to 18 ships, including 12 bulkers, 2 LNG carriers and four VLCCs, according to VesselsValue’s data.