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DSME to build five new tankers for KOTC

2 February 2012

South Korea's Daewoo Shipbuilding and Marine Engineering (DSME) has won an order from the Kuwait Oil Tanker Company (KOTC) to build four very large crude carriers (VLCC) and one product carrier for $560m.

Each of the double-hull VLCCs will have a length of 333m, breadth of 60m and be able to carry 2.2 million barrels of crude.

The fifth vessel, which is an aframax product carrier for oil products, will be 250m in length and 42m in breadth, with a capacity of 800,000 barrels and capable of transporting 110,000-ton petroleum products.

DSME will build the vessels at its Okpo yard in South Korea. They are expected to be delivered to KOTC by October 2014. According to reports, the ships are eco-friendly and energy-efficient, equipped with a fuel-saving device, the pre-swirl stator (PSS), and the volatile organic compounds emission reducing device De-VOC.

Daewoo CEO Nam Sang-Tae was quoted by asiasis as saying KOTC and the company have been building a long-term cooperative partnership.

"Starting from 2012's first contract, we will actively work for winning other overseas new orders," Sang-Tae said.

Since 1992, KOTC has awarded contracts for total of 16 vessels with DSME, including four VLCCs in 2008, two aframax PCs in 2010 and the recent order.

In 2012, DSME is aiming for around $11bn in new orders, the same as it initially forecast for 2011, despite the credit crunch that has seen orders cancelled.

Recently, the company had revealed a plan to build nine new tankers, of which four will be built by the Hyundai Company. The company will sign a contract with Hyundai Heavy in February and they are scheduled for delivery by end of 2014.