Frontline to order ten oil-product tankers

30 January 2012 (Last Updated January 30th, 2012 18:30)

Bermuda-based oil tanker shipping firm Frontline is planning to order ten oil-product tankers for about $330m.

Bermuda-based oil tanker shipping firm Frontline is planning to order ten oil-product tankers for about $330m.

The company said the contract will be signed within weeks at one of several South Korean yards currently competing for the business, according to TradeWinds.

According to sources, the new ships would cost about $33m each, while resale medium-range (MR) tanker price is about $36m.

MR tankers have a capacity to carry about 38,000 tons of oil products.

According to ship brokers, South Korea’s STX Offshore & Shipbuilding (STX O&S) is one of the front runners to win this contract. Frontline owner John Fredriksen said he is still talking to several contenders – mostly Korean – for the newbuilding. STX O&S had won a new order for two 57,000-dwt supramax bulkers and 4+2 82,000 kamsarmax bulkers.

In addition, the STX Dalian facility was about to win an order from Turkish bulker owner Ince Denizcilik for two 57,000-dwt bulkers, which are expected to be delivered in the second quarter of 2013. The company had not disclosed the value of the vessel but it is expected to be $26m each.

Meanwhile, STX O&S’s Jinhae yard has won its first new order this year for four 82,000-dwt bulkers from Greek owner Efnav, with two optional ships. The confirmed order for the four vessels will cost $33.5m each, with delivery scheduled for 2013, brokers told asiasis.com. In November 2011, the South Korean yard had won an order from European ship owner Zodiac Maritime to build six container ships.

In addition, the shipbuilder had also finalised newbuilding contract modifications with the European shipowner, which modified the earlier order for 13,000teu boxships to 16,000teu boxships, placed in October 2011.

The 16,000 teu vessels have a length of 399m, breadth of 54m and height of 30m, and will be built at the Jinhae yard. The vessels were scheduled to be delivered from the third quarter of 2014 and upon delivery they will be chartered to Mediterranean Shipping.