Shanghai-based COSCO SHIPPING Development said on Wednesday it had ordered 16 very large crude carriers (VLCCs) worth 13.43 billion yuan ($2.01 billion) from China State Shipbuilding Group.
A VLCC is a class of massive oil tanker with a deadweight tonnage (DWT) typically ranging from 200,000 metric tons to 320,000 metric tons.
Here are more details:
COSCO said its unit Oriental Fleet International entered into contracts with affiliates of China State Shipbuilding Group for 16 307,000 DWT-class VLCCs
The methanol- and LNG-ready vessels will cost about 839 million yuan each and will be funded through a mix of internal resources and external financing
The tankers will be built by Dalian Shipbuilding Industry and delivered between late 2029 and 2030
COSCO also said it plans to lease all 16 vessels to Pan Cosmos Shipping & Enterprises, a unit of COSCO SHIPPING Energy, under 20-year bareboat charter agreements
The leases will provide long-term stable income and cash flow while expanding the scale of the group's ship leasing business, the company said
In a separate statement, COSCO SHIPPING Energy said it expected annual rent for the 16 tankers to range from 680 million yuan to 1 billion yuan, once the deliveries commence
The average daily rent amounted to 116,520 yuan/vessel, excluding tax, the firm added
COSCO SHIPPING Development, a unit of China's COSCO SHIPPING Corporation, primarily deals with the production of standard dry cargo containers, refrigerated (reefer) containers, special containers and related equipment
($1 = 6.6742 Chinese yuan renminbi)
(Reuters)