China VLCC, a joint venture between China Merchants Energy Shipping (CMES) and Sinotrans&CSC, has bought two second-hand VLCCs from Sinokor Merchant Marine for a total of USD165 million, bringing its fleet in service to 33 VLCCs.
China VLCC signed the vessel acquisition contracts with Sunrise Petrochemical SA and Nanjing Fountain SA, both subsidiaries of Sinokor Merchant Marine, on 27 April, according to CMES’ stock filing on 29 April. CMES owns 51% of China VLCC.
According to IHS Maritime’s Sea-web.com, the two vessels are 2009-built Beijing Sunrise and 2011-built Dalian Glory, which had been chartered in by Nanjing Tanker before the company terminated the charterparty over the two vessels in 2014.
Nanjing Tanker chartered in Dalian Glory on 1 April 2013 with terms of between 5 and 5.5 years, with the rates priced at USD33,000 per day.
Beijing Sunrise was chartered in on 18 February 2013 with a five-year term, with the rates priced at USD33,000 for the first two years and USD36,000 for the remaining three years.
The deal will expand China VLCC’s fleet to 33 VLCCs after the company received 31 VLCCs as of February 2015 since its establishment in September 2014.