Economou secures four VLCC newbuilds for just $76m per unit

Splash understands George Economou has managed to negotiate a sensationally low price of just $76m per unit for a series of four VLCCs he has contracted Hanjin Heavy Industries & Construction’s Philippines yard (HHIC-Phil) to build.

While a number of outlets had quoted the price at $75m the actual deal is still incredibly cheap – the lowest price at the moment for a VLCC in South Korea, for instance, is $80m. Moreover, at 320,000 dwt the tankers Economou has ordered via his TMS Tankers vehicle are larger than what owners would get for $80m in South Korea.

All four ships are slated for 2019 delivery and cements HHIC-Phil’s reputation as a major player on the world shipbuilding stage.

HHIC-Phil was created by Hanjin Heavy in Subic Bay just over a decade ago as the location of its main yard in Busan was too cramped to build the ever larger types of ships that owners were demanding. HHIC-Phil is the largest shipyard in the Philippines and in terms of area size is also in the top 10 worldwide. Its orderbook now stands at 27, including seven VLCCs.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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