KOREA

VLCC deal for HHI Concordia Maritime, part of the Swedish Stena Group, has taken the decision to increase its fleet with a possible eight newbuildings. The Swedish tanker operator has signed a letter of intent with Korean yard Hyundai Heavy Industries (HHI) (see also Korea feature) for two 269,000 dwt crude oil carriers. The letter of intent includes options for a further six ships.

The new double-hulled VLCC design incorporates a twin screw, twin skeg arrangement, a beam in the region of 70m and a shallow draught of 16.75m which will allow operation in shallow draught ports.

While a definite figure has not been given for the newbuildings by Concordia, the company says that it obtained a good price in the present depressed market. Reports have put the price per vessel at US$72 million but the yard says that the figure is closer to $80 million per ship. A subsidiary of US petroleum refiner Sun Company will take the ships on a three-year time charter basis.