Sonangol has picked Hyundai Heavy Industries to construct up to four suezmax tanker newbuildings.
The Angolan oil company selected the South Korean shipbuilding giant over its chief domestic rival, Samsung Heavy Industries. The contract is estimated to be worth $228m, if all options are exercised.
The deal involves the construction of two ships to be delivered in 2021, with options for an additional pair of vessels.
The tankers are to be built at group shipyard Hyundai Samho Heavy Industries.
Sonangol floated the suezmax tender in February and shortlisted four shipbuilders: China’s New Times Shipbuilding, and the South Korean yards of HHI, SHI and Daehan Shipbuilding during its first round of evaluations.
But, by April, only HHI and SHI were left competing for the project.
The price of Sonangol’s 157,000-dwt tanker newbuildings has not been disclosed. But a shipbuilding broker said he believes the company is paying more than $57m apiece, based on current shipbuilding prices.
Sonangol is said to have the option to upgrade the tanker newbuildings to dual-fuel engines that can run on LNG, by paying an additional 18% to 20%.
A few industry players said HHI’s competitive pricing had led the company to win the project.
Officials at HHI declined to comment on the shipyard’s newbuildings activities, citing contract confidentiality.
Sonangol’s order is the second suezmax tanker contract for HHI this year.
Three weeks ago, CM Lemos booked two firm vessels plus two options to be delivered in February 2022. The Greek shipowner was reported to be paying $61m each as the tankers will be fitted with scrubbers.
Industry sources said Sonangol has ordered the suezmaxes as part of its fleet-renewal programme.
According to Clarksons’ Shipping Intelligence Network, Sonangol owns a fleet of 33 ships, of which 12 are suezmaxes, all built by DSME. The list includes two 2000-built suezmaxes — 159,000-dwt Sonangol Luanda and Sonangol Girassol.
One industry observer said DSME did not participate in Sonangol’s tender, as the yard no longer includes suezmax tankers in its portfolio.
“DSME used to be Sonangol’s favourite shipyard,” he said. “However, their relationship soured due to an offshore project that took place a few years ago.”
In addition to owning its own fleet, Sonangol also has a joint-venture suezmax tanker pool with shipowner Stena Bulk of Sweden that has a fleet of 21 ships with an average age of 9.2 years. All but one of the vessels in the pool are controlled by the two partners.
The Stena Sonangol Suezmax Pool turns five years old this year.
The last time the Sonangol ordered newbuildings was in 2014, when it commissioned DSME to construct two 157,000-dwt crude carriers at a reported price of $70m each. The pair — the Sonangol Cazenga and Sonangol Maiombe (both built 2017) — are now trading in the pool.
