South Korean shipping company Pan Ocean has secured long-term employment for four very large crude carrier (VLCC) newbuildings through a 20-year crude oil transportation contract valued at approximately $1.62 billion.
Under the agreement, Pan Ocean will provide crude transport services to SK Energy and SK Incheon Petrochem from September 2029 to September 2049. The vessels will be deployed on crude oil trades to South Korea, including shipments from the Middle East. Contract dates may be adjusted depending on the delivery schedule of the ships.
The four 300,000-dwt VLCCs are understood to be the vessels Pan Ocean ordered at Hanwha Ocean. The company announced in May an investment of KRW 783.4 billion (about $525 million) for the quartet, equivalent to roughly $131 million per vessel.
The long-term charter provides revenue visibility for the newbuildings and supports Pan Ocean’s ongoing expansion in the crude tanker sector. Earlier this year, the company agreed to acquire 10 VLCCs from SK Shipping in a transaction valued at nearly $700 million, significantly increasing its presence in the segment.
Pan Ocean has also expanded its VLCC orderbook with two vessels under construction at HD Hyundai Heavy Industries for delivery in 2027, and an additional VLCC on order at Qingdao Beihai Shipbuilding.