Kuwait Oil Tanker Co (KOTC) has sold its second-oldest VLCC as tankers continued to represent the bulk of recycling market sales.
Demolition brokers in Europe said the Kuwait Petroleum subsidiary sold the 310,000-dwt Al Salheia (built 1998) in an "as is" deal in Kuwait for $407 per ldt, or $17.3m.
KOTC confirmed the sale of the ship but not the amount it was paid.
The vessel is one of 12 VLCCs in the shipowner's fleet of 37 vessels. The company has been renewing its fleet, inking an order for a 318,000-dwt tanker at China’s Bohai Shipyard for delivery at the end of 2020 at a record low $79.7m.
The deal comes amid rising prices for demolition of tanker tonnage but rising concerns that newly opened Pakistan may be nearing its limit.
GMS, a cash buyer of ships for recycling, estimated this week that prices in Pakistan rose $10 to $440 per ldt this week for tanker tonnage.
"Pakistan too is swiftly starting to fill up with only a handful of less aggressive Buyers who are open to negotiate tonnage, albeit at much lower levels," the outfit said in a weekly report.
"Unfortunately for those cash buyers who still have a number of unsold large-ldt tankers/VLCCs in in their respective inventories, they are now in the unfortunate position of chasing down levels and taking expectedly large hits on their units."
In the aframax segment, Harrington Petroleum of the UAE has reportedly sold the 106,000-dwt Sage Pioneer (built 1999) for recycling. The ship was sold for optional delivery at a price of $441 per ldt or $7.7m, brokers said.
Harrington bought the tanker for $13m from Prime Tanker Management in August 2016, when it was the Great White. The sale leaves the oil trader with no ships. TradeWinds was unable to contact the company for comment on whether it has any plans to continue in the shipowning field.
Seven Islands Shipping of India appears to have decided against repairing its fire-damaged 46,000-dwt tanker Genessa (built 2000) and has instead sold it to Indian ship recyclers, brokers report.
The ship, which has gone for an undisclosed price, was severely damaged by an accommodation block fire off the coast of the Indian state of Gujarat in January. It was loaded with diesel fuel at the time. The fire was subsequently put out by the Indian Coast Guardand no oil spill was reported.
Seven Islands bought the tanker from Union Maritime in June last year for $7m. The company did not returns calls from TradeWinds seeking confirmation on the scrap sale.