KOTC Seals Financing for Eight Tankers, Orders VLCC

March 15, 2018

Kuwait Oil Tanker Company (KOTC) signed a financing deal with a syndicate of banks worth around USD 467 million (KD 140 million) on March 15.

The financing will be provided by Warba Bank, Ahli United Bank and Kuwait International.

The ten-year financing deal is intended for eight tankers, KOTC said.

In addition, KOTC inked a shipbuilding contract with Bohai Shipbuilding Heavy Industry Co., part of China Shipbuilding Industry Corporation (CSIC), for a very large crude carrier (VLCC).

The VLCC will feature 318,000 in dwt and is worth USD 79 million.

The delivery of the giant tanker is expected in 2020.

The latest order comes on the heels of KOTC’s order for three very large gas carries (VLGC) from Hyundai Heavy Industries in January this year.

The order is part of KOTC’s fleet renewal plan and it will bring the company’s fleet to a total of 32 vessels.

Based on its website data, KOTC currently has a fleet of 28 ships, comprising 12 very large crude carriers (VLCC), ten product carriers, four LPG carriers and two bunker vessels.