KOTC, DSME ink shipbuilding contracts for 2 Aframax tankers

Within the framework of the ambitious efforts of Kuwait Oil Tanker Company (KOTC) to modernise its fleet, while still in the process of construction of four (4) very Large Crude Carriers (VLCC), KOTC has embarked on accomplishing the Phase II of the New Building Project by further addition of two (2) Aframax size petroleum product Tankers. Kuwait Oil Tanker Company (KOTC) and Daewoo Shipbuilding and Marine Engineering (DSME) are today (June 28, 2010) signing the Shipbuilding Contracts for the construction of two (2) Aframax size Petroleum Product Tankers (LR-2). Under these contracts, DSME will design, construct and deliver two (2) Aframax size Petroleum Product Tankers (each 110,000 tons deadweight) to KOTC. The contracted price of each of the new Aframax Tanker is $71,960,000 per vessel and both two (2) vessels will be delivered to KOTC during the year 2012.
The chronological events pertaining to this contract are as follows:
n Floating to Tender -- September 03, 2009
n Receiving of Bids -- December 13, 2009
n Tender Evaluation completed -- June 06, 2010
n Signing of Letter of Intent (LOI) -- June 13, 2010
n Signing of Shipbuilding Contract -- June 28, 2010
In the present age of environmental awareness, ports worldwide require high standard double hull tankers, and in order to be amongst the leading oil tanker companies, Kuwait Oil Tanker Company faces a real challenge.
This New Building Project is part of the ongoing plan of KOTC fleet phase out, modernization and replacement of the ageing single hull tankers with modern double hull tankers. This also constitutes a part of the strategic tonnage requirement of Kuwait Petroleum Corporation for the State of Kuwait in the present age of environmental awareness, the ports worldwide require high standard double hull tankers, and in order to be amongst the leading oil tanker companies, Kuwait Oil Tanker Company faces a real challenge.
Previously KOTC has enjoyed the distinction of being one of the top ranking tanker owners/operators in the world. KOTC's Management now has the mission and vision to bring back the elite distinction and enjoy the reputation to be amongst the leading tanker owners/operators in the world.
Kuwait Oil Tanker Company has already demonstrated high standard during the construction of the new vessels, which was proven by two of KOTC tankers constructed during phase '1' being chosen as best ships of the year internationally. We sincerely hope that our coming new ships will be equally superior as the previously delivered vessels.
The acquisitions of these new vessels will not only lower the average age of KOTC fleet but will also increase the overall efficiency and competitiveness of our fleet in the international market and provide strategic cover to the State of Kuwait. It is also intended to enhance the financial earnings of KOTC.
Given the major capital investment this project represents, the contracts are being awarded to DSME only after a series of thorough and stringent commercial and technical evaluation process through an international biddings competition. The tender has been executed in line with tender procedures of the state of Kuwait, through the CTC.
The main objectives of KOTC Fleet New Building Project Phase II are as follow:
n To maintain strategic tonnage cover for the State of Kuwait/KPC
n To provide quality, safe and efficient oil transportation service to KPC
n To counter replace 'aged' and single hull tonnage with modern double hull vessels.
n To maintain the strategic fleet strength.
n To retain KOTC's standing in the industry and uphold its reputation.
n To seek commercial gains due to high freight market.
n To maintain and enhance employment / career opportunities for Kuwaiti nationals.
n Remain competitive, uphold and enhance company reputation in the highly competitive and rapidly expanding oil tanker market.
The management of the present project is being undertaken by KOTC in a methodical manner. The project has been carefully planned and being executed transparently and systematically with the involvement of various Groups, Committees and third party Consultants. Strictly in compliance with the tender procedures of the State of Kuwait through the CTC.
Every task / process of the project is being carried out as per approved procedures, being endorsed and approved through the relevant hierarchy of Committees.
KOTC is also planning further enhancement of the fleet which will consist of nine (9) tankers, with four (4) medium range product carriers, four (4) very large crude carriers and one (1) more Aframax size petroleum product carriers.