Pan Ocean has successfully signed a contract for the charter of a VLCC (Very Large Crude Carrier) tanker with Trafigura for a duration of three years and a value of $110 million. This contract, valued at 148.18 billion South Korean won, was recently announced in a stock market report.
Contract Details and Start Date
According to available information, this tanker will start operations on December 1, 2023, and will collaborate with Trafigura at least until December 1, 2029. Trafigura also has an option to extend the collaboration for up to 39 months. This contract covers a minimum of 1,096 days, with a gross daily income estimated at $100,000. Details regarding the type of tanker have not been specified in the stock report, but Pan Ocean has stated that this tanker will operate globally, including in the Middle East and Asia.
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Increased Tanker Activities of Pan Ocean and Trafigura
This contract has been signed at a time when both companies are rapidly increasing their activities in the tanker sector. Pan Ocean has signed an agreement this year to purchase 10 VLCC tankers from SK Shipping for $694 million and has subsequently entered into new contracts for building tankers in South Korea and China. Pan Ocean's latest confirmed order includes two new tankers with a capacity of 319,000 dWT, which have been ordered from the Qingdao Beihai shipyard, and the company has ordered a total of three tankers from this Chinese yard.
On the other hand, Trafigura is preparing to list its new tanker company, Volare Shipping, on the Oslo Stock Exchange. The company has recently secured $500 million through investment and is currently valued at approximately $1.2 billion. Volare Shipping is operating with six VLCC tankers and has eight new tankers under construction to be completed by 2028; however, Trafigura will remain the main shareholder and commercial manager.
Pan Ocean has also secured longer-term contracts for several of its under-construction tankers. In June, the company signed a $1.62 billion contract for 20 years to transport crude oil with SK Energy and SK Incheon Petrochem, which includes four new tankers set to commence operations from 2029.
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