Kuwait's state tanker company will put an order for four Very Large Crude Carriers (VLCCs) this year, as part of its fleet renewal plans, a senior official said on Wednesday, an investment estimated at $520 million.
The Kuwait Oil Tanker Company (KOTC) is preparing to issue a tender sometime this quarter, as it seeks to replace its ageing tanker fleet, he said. "This is a strategic requirement in accordance with our parent company Kuwait Petroleum Company (KPC). We are building ships based on their requirements for energy transportation," said Mahmoud Abdullah, General Manager of Fleet Engineering at KOTC.
Shipbrokers estimate the cost for one supertanker newbuild at around $130 million. KOTC, a subsidiary of KPC, which uses ships to transport its own crude and oil products, has a fleet of 23 oil tankers that include seven VLCCs.
The shipping company will receive KPC financing for the investment and will take delivery of the vessels between 2010 and 2011, Abdullah said. "The new supertankers will replace four single-hulled tankers, which will be phased out due to international regulations," Abdullah said.
Under International Maritime Organisation regulations, which took effect in April 2005, all single-hulled tankers are to be phased out by 2010, or on their 25th year, to reduce the risk of oil spills. Abdullah said that KOTC would not limit its choice of shipyards and would be looking at all their options before placing their orders.
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