South Korean shipbuilder STX Offshore & Shipbuilding (STX O&S) said on 18 May that it has won an order for up to eight LR1 tankers for a long-term charter deal with Royal Dutch Shell.
STX O&S did not reveal the shipowner’s identity, but market sources said Sinokor Merchant Marine is behind the order.
The deal is for four firm orders of 74,000 dwt tankers, with options for another four ships.
If all options are exercised, the total contract value would be USD375 million, working out to a price of USD46.875 million for each ship. The ships are scheduled to be delivered from end of 2016.
Since the first half of 2014, STX has clinched 21 of the 36 LR1 tankers that have been ordered worldwide, giving it a 60% market share.
The shipbuilder said, “Despite keen competition for such vessels among Chinese and South Korean shipbuilders, STX’s success comes from the superior fuel efficiency of its ships. Research into the building of MR and LR tankers is paying off with the recovery in demand for such ships.”