Hyundai Mipo to build six product tankers for Scorpio

3 March 2013 (Last Updated March 3rd, 2013 18:30)

South Korea's Hyundai Mipo Dockyard (HMD) has won a contract from Scorpio Tankers to build four MR product tankers and two ice-classed Handymax product tankers.

South Korea’s Hyundai Mipo Dockyard (HMD) has won a contract from Scorpio Tankers to build four MR product tankers and two ice-classed Handymax product tankers.

The order is an option Scorpio exercised with HMD and is part of the shipowner’s ongoing new-building programme to add fuel-efficient vessels to its fleet.

Each MR product tanker is expected to cost about $33m, while the 37,000dwt Handymax ice class-1A product tankers will be around $31.25m each.

Two of the four MR Product tankers are scheduled to be delivered in the second quarter of 2014 with the third and fourth vessels slated for delivery in the third and fourth quarter of 2014, respectively.

The South Korean shipbuilder expects to deliver the two Handymax vessels in the third quarter of 2014.

The shipowner has fixed-price options for the construction of four more Handymax vessels and an extension on previously obtained fixed-price options.

HMD secured a $120m contract from Scorpio in February 2013 to build four Handymax ice class-1A product tankers including a fixed-price option for the construction of four more Handymax vessels.

Delivery of the new 37,000dwt vessels from the South Korean shipyard is expected to take place in the third quarter of 2014.

Scorpio currently has 26 newbuilding product tankers on order with HMD and SPP Shipbuilding, including 20 MR and six Handymax ice class-1A tankers.

Out of the total orders, two vessels are scheduled to be delivered by April 2013, while the remaining 24 are expected to be delivered by the end of 2014.

Scorpio currently has fixed-price options to order 12 more product tanker vessels at South Korean shipyards.