Oman Shipping has signed a deal to expand its fleet with three megaships compliant with new fuel regulations.
The Oman Shipping Company (OSC), part of the ASYAD Group, has made an agreement with Daewoo Shipbuilding & Marine Engineering (DSME) to build three eco-friendly Very Large Crude Carriers (VLCC) that are expected to increase company oil revenues by 10%.
Each of the ships will be 336 metres long with a capacity of 300,000 tons. They are compliant with environmental standards such as the International Maritime Organization’s 2020 low sulphur fuel cap.
Oman’s national maritime operator has invested in further ships as part of its ongoing fleet renewal strategy to improve the quality and sustainability of vessels, and increase connectivity between national and global ports in response to rising customer demand.
Abdulrahman Al Hatmi, group CEO at ASYAD, commented: “Oman Shipping Company’s capabilities and customer offerings are growing from strength to strength in response to increasing demand. OSC’s fleet renewal programme reflects the company’s commitment to high-quality services, enhanced global connectivity and industry-leading competitiveness.”
DSME, the third largest shipbuilder in South Korea, are set to merge with the largest shipbuilder, Hyundai Heavy Industries, by the end of 2019, according to Market Screener. It began working with the Omani government in 2006.
State-owned OSC owns, manages and charters ships under the parent group of ASYAD Group. It has a fleet of 50 vessels, including LNG carriers, VLCCs, and tankers.
Price of brent crude oil was valued at US$71.17 per barrel in May 2019, with a year on year reduction of 1.1%, according to the IHS Markit Index. Meanwhile, OPEC announced on Monday that oil production cuts will be extended until March 2020.
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