Thursday, June 18, 2009
CPC wants to buy up to 35 VLCCs
Thursday, 18 June 2009
Taiwanese oil major CPC Corporation wants to start running its own tanker fleet following reported losses of more than $3 billion due to costs including the transportation of crude and petroleum products. State-owned CPC has been quoted saying it “plans to turn this situation around by building its own oil tanker fleet” and according to the Economic Daily News CPC says its fleet will eventually grow to include 35 VLCCs.
That would make CPC the nation's leading oil transporter ahead of rival operator Formosa Plastics Group which ships close to all of its oil using owned tankers and thus currently enjoys a significant advantage in transportation costs over CPC.
CPC is partnering Chinese Maritime Ltd and U-Ming Marine Transport Corporation in this endeavor as it does not have permits for such operations, and the three companies are pegged to pool NT 50 billion ($1.5 billion) for the joint venture.
CPC will hold a 48% stake in the JV, while the other two partners own 26% each, Taiwan Today reported in translation from the Economic Daily News.
First phase plans include the construction of seven 300,000 dwt VLCCs and one 80,000 dwt tankers which could possibly hold both clean and dirty products.
To kick-start the new JV, U-Ming subsidiary Overseas Shipping Pte Ltd has reportedly signed an MoU to buy the VLCC Starlight Venture for $80 million.
Sources tell Tankerworld that the Hong Kong-flagged 2004-built 317,970 dwt Starlight Venture is group owned by Wah Kwong Shipping Holdings while its registered owner is Great Era Investment.
Source: Tanker World
