Cosco Shipping Energy Transportation Co. [SHA:600026; HK:01138] will entrust Dalian Shipbuilding Co. to make seven large and ultra-large oil tankers for USD554 million (CNY3.673 billion).
The Shanghai-based company said yesterday that it entered into a shipbuilding contract with the shipbuilder yesterday.
Four of the new ships are 319,000-ton Very Large Crude Carriers (VLCCs), and three are 158,000-ton Suezmax tankers, Cosco Shipping said.
The four VLCCs are slated for delivery by August, October and December of 2020 and March 2021, and the expected delivery dates for the Suezmax vessels are in August and November 2020 and January 2021, Cosco Shipping said.
As the transaction exceeds 25 percent of Cosco Shipping Energy's capitalization on the H-share market, it is pending board approval.
The company said the new ships will improve its fleet structure and overall competitiveness.