Pan Ocean clinches 20-year US$1.6Bn charter for VLCC newbuild quartet

The owner disclosed on 19 June, through a stock exchange filing, that it had signed a 20-year charter contract worth approximately US$1.62Bn with SK Energy and SK Incheon Petrochem for the transportation of crude oil from the Middle East to Korea.

The new charter, which will run from September 2029 until September 2049, covers the four VLCCs Pan Ocean announced it had ordered last month in a deal worth around US$524M.

While Pan Ocean has not disclosed the identity of the shipbuilder, shipbroking sources said compatriot Hanwha Ocean has been selected to construct the vessels.

Earlier this year, Pan Ocean agreed to acquire 10 secondhand VLCCs from SK Shipping for US$668M.

The company’s Q1 financial report showed an orderbook comprising three VLCCs and five MR tankers. In addition, Pan Ocean has eight bulk carriers under construction, split evenly between the Newcastlemax and Ultramax segments.

Pan Ocean currently operates 263 vessels, including 218 bulk carriers, 19 tankers, 14 LNG carriers and 12 container ships, including chartered-in tonnage.

South Korean media previously reported that Pan Ocean was seeking to expand its VLCC business, in line with a broader increase in newbuilding activity across the tanker sector.