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STX Offshore & Shipbuilding Wins Contract to Build 8 LR1 Tankers
Half of Total
STX Offshore & Shipbuilding Wins Contract to Build 8 LR1 Tankers
  • By Cho Jin-young
  • May 19, 2015, 09:30
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STX Offshore & Shipbuilding’s dockyards in Jinhae, South Korea.
STX Offshore & Shipbuilding’s dockyards in Jinhae, South Korea.

 

Following March, STX Offshore & Shipbuilding has won an order to build Long Range Product Carriers (LR1) once again, sweeping more than half of total LR1 tanker orders made in the market recently.

The company announced on May 18 that it signed a contract with a ship company from the Marshall Islands to construct four 74,000 ton LR1 tankers, plus the option for four additional units. The price of the contract was US$375 million (407.44 billion won), including the option.

Under the contract, the vessels will begin being delivered from the end of 2016. Once delivered, the LR1 tankers will be chartered out to Royal Dutch Shell, a multinational oil and gas company, on a long-term basis.

With this contract, STX Offshore & Shipbuilding has received orders for 21 tankers since the first half of 2014, out of 36 orders placed in the global market. Converting the number into market share, the company accounts for nearly 60 percent. It is believed that its LR1 tankers won the hearts of ship companies with its fuel efficiency and cargo efficiency.

An official from STX Offshore & Shipbuilding said, “Our research and development in high-efficiency smart MR tankers and smart LR tankers came to fruition in 2013. Along with that, we are showing good results, as we have recently won an increasing number of orders to build medium-sized tankers.”