Hyundai Mipo Dockyard to build four Handymax product tankers for Scorpio Tankers

7 February 2013 (Last Updated February 7th, 2013 18:30)

South Korea's Hyundai Mipo Dockyard (HMD) has won a $120m contract from Scorpio Tankers to build four Handymax ice class-1A product tankers.

South Korea’s Hyundai Mipo Dockyard (HMD) has won a $120m contract from Scorpio Tankers to build four Handymax ice class-1A product tankers.

The contract includes a fixed-price option for the construction of four more Handymax vessels.

The new 37,000dwt vessels, scheduled to be delivered in the third quarter of 2014, are part of Scorpio’s ongoing newbuilding programme to add fuel-efficient vessels to its fleet.

Scorpio currently has 20 newbuilding product tankers on order with HMD and SPP Shipbuilding, including 16 MR and four Handymax ice class-1A tankers.

Out of the total orders, two vessels are scheduled to be delivered by April 2013, while the remaining 18 are expected in 2014.

Scorpio currently has fixed-price options to order 14 more product tanker vessels at South Korean shipyards.

"The contract includes a fixed-price option for the construction of four more Handymax vessels."

In December 2012, Scorpio placed orders for six MR product tanker newbuildings, with a fixed-price option to build eight more vessels.

The company had exercised an existing option it had with HMD to build two vessels and has signed a letter of intent with SPP Shipbuilding for four ships.

Scorpio agreed to pay $33m for each of the six newbuildings and the same for each of the optional eight additional vessels.

The company currently has a fleet of 13 tankers, including one LR2 tanker, four LR1 tankers, one Handymax tanker, six MR tankers and one post-Panamax tanker.

Scorpio also has time-chartered 20 vessels, including three LR2, three LR1, nine MR and five Handymax tankers.