STX O&S Wins Deal to Build Six VLCCs from John Fredriksen

STX Offshore & Shipbuilding (O&S) announced that that oil tanker magnate John Fredriksen has recently ordered two Very Large Crude Carriers (VLCCs). The order comprises two firm orders and four additional options according to shipbuilding situation. So, the deal can be expanded to a total of six ships. Each of the 300,000 dwt tankers is 330 meters long, 60 meters wide, and 30 meters tall. The two firm orders will be delivered in the first half of 2017, but their cost was not disclosed.

STX O&S said that the contract is tied to orders for tankers that its former Dalian yard won earlier. In July 2013, the company signed a self-depending agreement with creditors due to its financial difficulties and canceled existing low-priced orders. Among them, the deal to build six tankers with John Fredriksen was included. Both companies decided to change the deal from takers to VLCCs and the yard to its Jinhae yard rather than cancel the contract.

STX O&S also won the deal to build eight 74,000 ton LR1 tankers (four options) last month, focusing on the oil tanker sector. From 2014 to last month, the company has ordered 21 among a total of 36 LR1 tankers in the global market, showing an overwhelming market share.
Source: Business Korea