China Merchants Energy Shipping (CMES) has announced today that the board has approved a plan for China VLCC, a tanker joint venture between CMES and Sinotrans & CSC, to order 10 VLCCs at three domestic yards.
CMES said the contract details will be announced at a later date.
China VLCC currently operates a fleet of 34 VLCCs, with an additional nine on order. In October, it sold VLCCs New Medal (297,600 dwt, built 2009) and New Founder (297,400 dwt, built 2008) to Greece’s Navios for $133m.
China Merchants Group, the parent company of CMES, is currently working on a takeover deal for Sinotrans & CSC.