Wednesday, October 24, 2018
DSME Wins Order for Three VLCCs Worth US$260 Million
Contract Includes Three Optional Vessels
DSME Wins Order for Three VLCCs Worth US$260 Million
  • By Yu Kun-ha
  • May 17, 2018, 21:19
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Daewoo Shipbuilding & Marine Engineering (DSME) has received a US$260 million order for three very large crude carriers (VLCCs) from Hunter Tankers SA under the Hunter Group in Norway.

This contract is part of the optional deal that DSME won in February that also includes an additional order for three vessels expected in the future.

DSME President Jeong Seung-lip (left) and Arne Fredly, the major shareholder of Hunter Group, shake hands after signing a contract on three VLCCs in Monaco on May 15.
DSME President Jeong Seung-lip (left) and Arne Fredly, the major shareholder of Hunter Group, shake hands after signing a contract on three VLCCs in Monaco on May 15.

The VLCC measures 336 meters long and 60 meters wide. It is an eco-friendly ship that meets the environmental regulations of the International Maritime Organization (IMO), and is equipped with high-efficiency engines and advanced fuel-saving technologies.

The VLCCs can be repeatedly constructed with the same design and specifications. In this regard, the company expects the contract to have a positive impact on shipbuilding productivity and profitability.

DSME has received 22 vessel orders, including 8 liquefied natural gas (LNG) carriers, 13 VLCCs, and 1 special ship, worth about US$2.61 billion, so far this year, approximately 36% of this year’s contract target of US$7.3 billion.

According to Clarkson Research, a British research company specializing in the shipbuilding and shipping industry, DSME has won more than half of the 25 VLCCs ordered so far this year. In the case of LNG carriers, it has won 8 out of the 19 ordered, the largest number among shipbuilders in the world.


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