South Korea’s Korea Line has signed a contract with domestic oil refining firm GS Caltex to provide oil transportation services.
The KRW210bn ($197m) contract will see Korea Line transport crude oil for GS Caltex between Korea and the Middle East using two VLCC newbuildings from the end of December 2019 to Janaury 1, 2026.
The company has made plans to order the two vessels at a domestic shipyard.
According to Korea Line, the contract value is equivalent to 38.96% of the company’s revenue in the previous year.
In December last year, GS Caltex awarded a similar oil shipping contract to compatriot logistics company Hyundai Glovis.
