This will take the number of vessels in the fleet up to 53, a top company official told local media.
“Between November this year and November 2016, we will receive all 10 vessels. And these vessels will be managed by Oman Ship Management Co, a wholly-owned subsidiary of Oman Shipping Co,” Tarik Mohammed Al Junaidi, acting CEO of Oman Shipping Company told Times of Oman in an exclusive interview.
He explained that about two years ago, Oman Shipping signed a contract with Shell for 10 MRs and they are under construction at Hyundai.
The total project cost for the 10 vessels is about $320 mill. As much as 80% of the funding will be by way of term lending from financial institutions, the report said.
He said the aggregate capacity of Oman Shipping’s fleet will go up to 8.5 mill dwt, once the new ships join the fleet.“Each mid-range tanker has deadweight of 50,000 tonnes,” he said.
He explained that Oman Shipping has been expanding in line with the country’s demand for import and export requirements. “We started with Oman LNG, Oman Oil Company related products like Sohar Aluminum, Vale Oman and Salalah Methanol. Now the company is looking for opportunities in the international arena.”
Oman Shipping is looking at developments in Duqm for opportunities to provide ships for the proposed Duqm refinery, which is likely to be ready by 2019. “Duqm Refinery will require ships for transporting either crude or refined products outside. We are closely discussing with them,” he said, adding; “It all depends on how much is going to be exported and who is going to be their customers (regional or international firms). We want to be partners (in Duqm development).”
Referring to the requirement of additional vessels for Duqm, Al Junaidi said his company can either go for newbuildings or secondhand ships. “If it is secondhand vessel, we don’t have to wait. However, the time taken for ordering and taking delivery of a brand new vessel is about three years. In terms of timing, we are still fine,” he told the Times of Oman.