IOB Co. Ltd., as a newly established ship management company in Seoul, has taken control of four Arc4 class tankers and is planning to expand its fleet to Arc7 class. This Busan-based company is looking to expand its role in LNG transportation along the Northern Sea Route of Russia.
Control of Arc4 Class Tankers
IOB Co. Ltd. has started its operations with four 174,000 cubic meter Arc4 class tankers. These four tankers include North Moon, North Light, North Ocean, and North Valley, which are being built by Hanwha Ocean for Mitsui O.S.K. Lines in Japan in 2024 and 2025. The management and ownership of these tankers have recently been transferred to a structure that connects the Russian gas producer Novatek and IOB.
Challenges and Opportunities
This development comes after months of inactivity for these tankers due to uncertainties arising from sanctions. Three of these four tankers – North Moon, North Light, and North Ocean – were sanctioned by the European Union in May 2025 for participating in Russian LNG trade but were removed from the sanctions list two months later. However, these tankers remain idle, highlighting the commercial challenges for the specialized Arctic fleet.
IOB's plans indicate that the company sees these restrictions as an opportunity. As a specialist in managing ice-class LNG vessels, the company offers technical, marine, quality, safety, and crew management services and has 13 years of experience in managing a global LNG fleet.
Expansion to Arc7 Class
The planned expansion to Arc7 class is of particular importance. IOB has not specifically mentioned Arc7 vessels, but its goal to control three to six vessels in the near future arises as several Arc7 vessels remain with Hanwha Ocean due to sanctions. These developments also point to South Korea's increasing role in Arctic transportation.
South Korea is recognized as one of the largest shipbuilders in Russia's LNG projects, and Busan is emerging as a gateway for Arctic trade.
