The order, with a potential value in excess of $1.35 bill, is being placed by an Asian financial partner, believed to be Philippines-based Bank of Commerce and the vessels will be leased on delivery to Trafigura with purchase options attached, the trader confirmed.
Through this agreement, Trafigura has supported a firm order for 22 crude oil and product tankers with options for a further 10 vessels, consisting of MRs, LR2s and Suezmaxes.
The vessels will be built by Hyundai Heavy Industries (HHI) and by Chinese privately owned shipbuilder New Times Shipbuilding. The vessels will be delivered from the end of 2018 through 2019, with the majority of vessels being delivered in the first quarter of 2019.
Broking sources said that eight Suezmaxes worth around $55 mill each will be split equally between HHI and New Times with four options to be declared; eight LR2s will be built at New Times for around $41 mill each and six MRs will come from Hyundai Mipo for $32 mill each, plus another six options.
Elsewhere, COSCO affiliates were said to have placed orders for eight VLCCs, plus four options and eight Suezmaxes. Two VLCCs, plus two options, were believed ordered from Shanghai Waigaiqiao; two plus two at CSSC OME; two at DACKS and the remaining two VLCCs at NACKS. Three Suezmaxes were thought destined for Shanghai Waigaiqiao and five for CSSC.
Elsewhere, Enesel was said to have declared an option for another VLCC at HHI, while Tai Chong Cheang (TCC) was reported as contracting two VLCCs at HHI for around $79 mill each.
Kyklades was said to have ordered five Aframaxes, plus two options, at Sungdong for $44 mill each, while finally Union Maritime was reported to have ordered two MRs, plus two options at HMD for $32 mill each.
Remaining with newbuildings, Rosneft and Hyundai Samho Heavy Industries have signed an agreement under which the South Korean shipbuilder will provide technical support in the design and construction of Aframaxes at Russia’s Zvezda shipyard.
Meanwhile, AET has conducted a double naming ceremony for two LR2s from HHI.
The Singapore flagged 114,000 dwt ‘Eagle Lyon’ and French-flagged ‘Eagle Le Havre’, are owned by AET but have been taken on long-term charter by French oil major, TOTAL.
In addition, TEN has taken delivery of the Aframax ‘Oslo TS’, the seventh in a series of nine tankers built for long-term employment to a European oil concern. The vessel which has a 1B Ice Class notation commenced its long-term employment with possible gross revenues in excess of $110 mill.
The two remaining Aframaxes under TEN’s 15-vessel growth program, the ‘Bergen TS’ and the ‘Stavanger TS’ are scheduled to be delivered and commence their long term employment in the third and fourth quarter of this year.
In the charter market, Aframaxes and LR2s were reported fixed for around $14,000-$15,000 per day, while MRs were timechartered for about $14,000-$14,500 per day for 12 -month periods.
Among the latest fixtures reported was Shell’s short term charter of the 2008-built LR2 ‘Maersk Piper’ for one to four months business at $11,500 per day.
The 2008-built LR1 ‘Eternal Diligence’ was also extended to Shell for 12 months at $11,750 per day.
Clearlake was believed to have taken the 2012-built MR ‘Hafnia Lupus’ for 12 months at $14,000 per day, while STI was said to have extended the 2013-built MR ‘Zefyros’ for another 12 months at $13,250 per day.
In the S&P sector, there has been a dropdown, newbuilding resales and a sale and leaseback deal reported, as well as the usual selection of secondhand purchases.
The dropdown concerned KNOT Offshore Partners completion of the acquisition of the ownership interests in the company that owns and operates the shuttle tanker ‘Vigdis Knutsen’ for an aggregate purchase price of $147 mill less $137.7 mill of outstanding debt, plus about $17.9 mill for a receivable owed by Knutsen NYK to the owning company and around $0.9 mill for certain capitalised fees related to her financing.
Navig8 Chemical Tankers has entered into sale and leaseback agreements with CMB Financial Leasing for two 25,000 dwt stainless steel chemical tankers.
The ships are the 2017-built ’Navig8 Saiph’ and ‘Navig8 Sceptrum’, and the expected net proceeds from the transaction are set at $66.84 mill, the company said.
Navig8 will bareboat charter the vessels from CMB for seven years and has purchase options to re-acquire the vessels during the charter period, with the first option exercisable on the third anniversary of the date of delivery of each vessel to CMB, and obligations to repurchase the vessels at the end of the bareboat period.
Top Ships has announced that it has entered into an agreement with a related party to purchase for $6.5 mill, an additional 41% interest in Eco Seven Inc, a Marshall Islands company that owns the MR ‘Stenaweco Elegance’.
She is operating under a three year timecharter at a rate of $16,500 per day, which is due to expire in March, 2020.
Ocean Yield is to acquire a new Suezmax for $54 mill with 14-year bareboat charter to a company owned and guaranteed by Okeanis Marine Holdings. The purchase price includes a seller’s credit of $7 mill, giving a net purchase price of $47 mill.
Broking sources have reported that Delta Tankers has purchased two Suezmax newbuilding resales for $114 mill in total.
NORDEN has confirmed the purchase of a 2009-built MR. The South Korean-built vessel is expected to be delivered in July, 2017 and will be renamed ‘Nord Pearl’.
The purchase marks NORDEN’s first tanker acquisition since the company sold three Handysize product tankers last year.
In addition, NORDEN said that it had agreed long term charters for a further two MR newbuildings and has thus concluded four MR newbuilding charters so far this year. The vessels are scheduled to be delivered during 2018-2020. All the agreements come with purchase options.
In other MR news, brokers reported the sale the of 2008-built ‘Tamarin’ to Greek interests for about $17.7 mill, while the 2004-built ‘Shimanami Sunshine’ was reported sold to undisclosed interests for a price said to be in the low $10 mills.
In the larger sector, New Shipping was believed to have splashed out $20.8 mill on the 2002-built VLCC ‘TI Topaz’. while SINOKOR was said to have paid $30 mill for the 2004-built VLCC ‘Irene SL’ and Indian interests were reported to have purchased the 2002-built VLCC ‘Gener8 Poseidon’ for $22.5 mill.
Frontline’s 1998-built Suezmax ‘Front Brabant’ was reported sold to Indian interests for $9 mill. Eastern Pacific was reported to have bought the 2012-built Aframax ‘Nissos Santorini’ for $30.3 mill, while Bllue Lines Shpg was said to have purchased the 2002-built Aframax ‘BLS Ability’ for $9 mill.
In a bank enforced sale, Russian interests, said to be KASCO, reportedly purchased the 2001-built LR1 sisters ‘Mare Atlantic’ and ‘Mare Pacific’ for $6.8 mill in an en bloc deal.
Leaving the fleet were the 1997-built OBO ‘SKS Tugela’ reported sold to Indian breakers for $328 per ldt and the 1984-built MR ‘Consuela’ sold to Bangladesh for $385 per ldt.