Oman Shipping Company (OSC) is expanding courtesy of an order for a pair of newbuild Very Large Crude Carriers (VLCC ) with Daewoo Shipbuilding & Marine Engineering (DSME).
According to Michael Jorgensen, OSC's CFO and acting CEO, said the VLCCs are expected to be deployed in the spot market, as the company plots further fleet expansion in the bulk and container market.
Today OSC’s fleet includes 49 vessels including 16 VLCCs, 17 product tankers and 4 chemical carriers.
The two latest additions will be constructed at DSME’s Okpo shipyard measuring 336m in length, with a breadth of 60m, each with deadweight capacity of 300,000 mt. The order is scheduled for delivery in the final quarter of 2020.
“The new-build VLCC project will involve the very latest eco-friendly technology to meet and exceed the environmental regulation standards of the International Maritime Organization," said Jorgensen. "Key elements of the next generation design include highly-efficient engine and fuel-saving technologies. They will also be outfitted with open loop scrubbers bringing addition environmental benefits while also addressing new SOX, NOX environmental regulations effective from January 01, 2020."
Much of the recent growth has been underpinned by major industrial and petrochemical clusters established at Sohar, Salalah and Duqm. Recent investments in mega refining and petrochemicals schemes in these clusters well for the further growth of OSC’s shipping capacity, said Jorgensen, noting that significant growth is also being driven by a new VLCC ‘spot-chartering’ desk which secured more than 100 fixtures with world leading oil majors in its first 20 months of operation.
In the domestic market, OSC’s growth is being driven by a 20-year contract to transport condensate for ORPIC (Oman Oil Refineries and Petroleum Industries Company) and a 15-year deal transporting methanol for OTI (Oman Trading International) from Salalah Methanol plant.
The company is further supporting the export of LPG from Sohar Refinery to Yemen, Sudan, India, Bangladesh and Sri Lanka.