Bihar International has quietly increased its orders for LR2 product tankers in China to four after exercising options on two vessels at New Times Shipbuilding.
The ships are part of its fleet replacement programme.
The Saudi Arabian tanker company’s decision to exercise the options came to light when steel cutting began on a third 110,000-dwt ship at the Jingjiang yard in late July.
Sources close to Bihar told TradeWinds that it took up the options early in the year, just ahead of a push by shipyards to increase pricing for optional vessels due to rising steel costs.
The options were attached to an initial two-ship order that Bihar signed with New Times in July 2019. Those two tankers, the Angelonia and Lunaria, were launched in June. They are scheduled for delivery this year and reportedly cost between $47m and $48m each.
Newbuilding brokers said the optional LR2s, slated for delivery next year, would have cost that amount if signed in early 2021, but Chinese yards would price similar orders at around $51m today.
The first two LR2s were part of a package of orders Bihar signed with New Times that included a pair of 50,000-dwt MR2 product tankers at the shipyard, plus options for two more that were later taken up.
Two of the MR2s have been delivered, and the remaining pair is to be delivered by the end of 2021.
Bihar, the shipping arm of Saudi Arabia’s AK Albakri & Sons (Bakri Group), operates a fleet of more than 20 vessels, including crude and product tankers and medium-size gas carriers.
The vessels are managed by affiliated Bakri Group-owned Red Sea Marine Services, which also owns several tankers operated by Bihar.
The company has commercial offices in Jeddah and Dubai, with the latter serving a growing number of international clients.
Clarksons data indicates that 2021 has been a bumper year for New Times, which has secured 26 newbuilding contracts to date and has a total orderbook of 52 vessels.
