Oman Shipping Company (OSC) has ordered two VLCCs from Daewoo in South Korea at a reported cost of US$91mn each.
The 300,000-dwt tankers are scheduled to be delivered in 2021 and, assuming no sales in the meantime, will join the 16 other VLCCs in the fleet.
Oman Shipping Company’s chief financial officer and acting chief executive Michael Jorgensen said “The new additions to OSC’s VLCC fleet will be among the most technically advanced in the world. They will form a key part of our expansion plan over the coming years as we prepare for further investment in oil and product carriers in 2019/2020, particularly in the bulk and container market.
“The newbuild VLCC project will involve the very latest eco-friendly technology to meet and exceed the environmental regulation standards of the International Maritime Organization. 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 and NOx environmental regulations effective from 1 January 2020.”
Mr Jorgensen said 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.
“The investment comes as OSC continues to report strong growth following long-term deals with local refineries and traders. Our crude oil and product vessel portfolio accounts for more than half of the company’s national fleet. The latest expansion is a further reflection of the significant upturn in liquid cargoes, including crude, refined petroleum fuels and petrochemicals, being generated by Oman’s largely hydrocarbon-centric economy.
“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 bode well for the further growth of OSC’s shipping capacity.”
In the domestic market, OSC’s growth is being driven by a 20-year contract to transport condensate for Oman Oil Refineries and Petroleum Industries Company and a 15-year deal transporting methanol for Oman Trading International from Salalah Methanol plant.
The company is also supporting LPG exports from Sohar Refinery to Yemen, Sudan, India, Bangladesh and Sri Lanka.
