NITC VLCC order faces rough passage

The credit crisis together with US efforts to tighten sanctions is hampering efforts by National Iranian Tanker Co (NITC) to order 12 VLCCs which the company want for delivery in 2012. A shipbuilding source says NITC wants direct ownership of the tankers but moves by the US to firm up sanctions against Iran mean the tanker owner faces difficulty obtaining loans from foreign banks.

“NITC is now scouting for companies to order the ships so it can bareboat-charter them on a long-term basis,” said the source. “However, they are also having a tough time finding companies as the credit squeeze is making it difficult for anyone to get loans.”

Sources say NITC views Muscat-based Oman Shipping Co (OSC) as one of the prime candidates with whom to team up for the 320,000-dwt newbuildings. However, OSC is said to have told NITC that it is holding back from ordering ships for the time being as it has built up a huge order book.

Early last year, OSC placed a 10-unit VLCC order split equally between South Korea’s Daewoo and Hyundai. The 317,000-dwt newbuildings were ordered on a bareboat-charter contract to NITC for 10 years plus five more with a purchase option. The vessels were reported to have cost OSC more than $1.5bn. Both Daewoo and Hyundai are scheduled to deliver them between late 2010 and the first quarter of 2012.

Meanwhile, other sources say price issues are holding up talks between yards and NITC. One source says the Iranian owner is attempting to bring down the price to around $100m per ship but the South Koreans are said to be unwilling to go that low.

“Construction of a VLCC costs more than $100m,” said a shipyard source. “We cannot meet owners’ requests for that kind of price, even though steel-plate costs have come down.”

According to London broker Clarkson, Italy’s Fratelli D’Amato was the last shipping company to sign up for a VLCC newbuilding. It sealed a one-ship deal in November with South Korea’s STX Shipbuilding at a reported price of $156m for delivery in November 2011.