Hanwha Ocean lands $255M VLCC deal to expand into Oceania’s shipping market
Hanwha Ocean has secured a significant contract to construct two very large crude carriers (VLCCs) for an Oceania-based shipping company, valued at 375.3 billion won ($255 million). This deal further bolsters Hanwha Ocean's 2024 order book, which now totals $7.96 billion. The two VLCCs are scheduled for delivery by December 2028, catering to the replacement demand as older tankers reach the end of their service life.
The recent surge in VLCC freight rates, driven by increased oil production and exports from OPEC+, has created a strong market for these large tankers. OPEC+, comprising Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, Saudi Arabia, and the UAE, has boosted output, leading to higher demand for VLCCs.
Hanwha Ocean, previously uninvolved in supplying VLCCs to Oceania companies, expands its market reach with this latest order. This deal also solidifies Hanwha Ocean's standing in the global shipbuilding industry.
The new VLCCs, set to be delivered in 2028, will support the replacement of aging vessels in the global fleet. Their timely arrival coincides with the projected rise in oil transport demand, fueled by OPEC+ production growth. Hanwha Ocean's order book continues to grow as the market for large tankers remains robust.
