Teekay Forms JV for VLCC

Teekay Tankers has formed a joint venture with Wah Kwong Shipping in Hong Kong to invest in a VLCC newbuild, which will be delivered from Shanghai Waigaoqiao shipyard.

The contract price of the vessel is $98m and the joint venture plans to finance about $70m through commercial banks and the remaining from its own fund.

Teekay said the ship is expected to be delivered in April 2013 and will be chartered to a Chinese shipping company for five years.

The Bermuda-based tanker operator has also received an offer from its parent to acquire an Aframax tanker and a Suezmax tanker.