DSME wins 10 VLCC orders with HMM
Daewoo Shipbuilding and Marine Engineering (DSME) has won orders from Hyundai Merchant Marine (HMM) to build very large crude carriers (VLCC). Under the contract, DSME will build up to 10 crude carriers for Hyundai worth 900 billion won ($792 million), which would help the cash-strapped shipbuilder greatly. Yonhap reported quoting company sources that the DSME chief executive Jung Sung-leep and HMM CEO Yoo Chang-keun inked a letter of intent (LoI) in Seoul for Daewoo Shipbuilding to deliver five VLCCs with an option to build five more. The main contract will be signed by the end of July. The exact monetary terms of the deal are still being negotiated, but the per-vessel price is expected to be higher than the current market price of $80 million, according to the officials. The contract with HMM comes just a few days after DSME announced last week that it had received a $250 million order from Maran Tankers Management, the oil delivery unit of Greece’s Angelicoussis Shipping Group, for three very large crude carriers to be delivered by 2018. Adding the HMM order as well as one from Excelerate Energy of the United States for a liquefied natural gas floating storage and regasification unit, the total size of orders that DSME has clinched this year amounts to 13 ships or $1.4 billion.