Korea Line Moves Forward with VLCC Order

Korea Line Corporation, part of South Korean 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.

Daewoo Shipbuilding and Marine Engineering (DSME) has been selected to construct the ships.

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 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.

Separately, announcing the contract, DSME said it had secured an additional VLCC order from an unidentified European shipowner. The shipbuilder has secured orders for 17 vessels so far this year, including eight LNG carriers, eight VLCC and one special-purpose vessel.

Korea Line’s order comes in the wake of the company’s contract for 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.

World Maritime News Staff; Image courtesy: DSME