STX secures US$578m contract

03 Mar 2014
The tanker contract includes options for four more vessels

The tanker contract includes options for four more vessels

STX Offshore and Shipbuilding is to supply eight 74,000 tonne product/crude oil tankers, with four options for more, as part of a US$578.9m contract with Singapore’s Navig8 Product Tankers.

As part of Navig8’s fleet expansion plans, up to 12 LR1 tankers have been ordered, working out at around US$48m per vessel.

Navig8’s contract for the vessels involves a revised design with a wide beam and conventional length overall.

This recent order is crucial work for the restructured shipyard, which entered into the Voluntary Business Normalisation Programme in July 2013 due to financial difficulties and agreed a debt-for-equity swap with its creditors last week.

Navig8 already owns one 2011-built LR1 and operates eight more chartered in from owners including Navios.

The vessels are due for delivery by the end of June 2016. 

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