PaxOcean Group is the latest shipyard in China to enter the large-size tanker segment.
The Zhoushan-based facility is making its debut in the suezmax tanker sector with assistance from Samsung Heavy Industries.
Shipbuilding sources said the South Korean shipbuilding giant has subcontracted PaxOcean Zhoushan to build four 158,000-dwt crude oil tankers.
Multiple shipbuilding players said that the vessels were announced by the South Korean shipbuilder at the end of last week.
The Koje-based shipyard said an African owner has ordered the series of suezmax crude carriers for delivery by December 2027.
Without disclosing the buyer’s names, SHI said the tanker contract was worth KRW 459.3bn ($334m) or $83.5m per ship.
Shipbuilding players said the 158,000-dwt vessels were ordered by Greek shipowner George Procopiou’s Dynacom Tankers.
Brokers said the price of $83.5m apiece is low for a South Korean shipyard and the tankers would be subcontracted to a Chinese shipbuilder for construction — a first for SHI.
Samsung expanding capacity
Shipbuilding players said that SHI has been seeking to expand its shipbuilding capacity beyond South Korea for some time.
“It was talking to three or four shipyards for such cooperation — it inked the newbuilding deal and subcontract them out,” said one shipbuilding player.
“PaxOcean will build the whole suezmax tanker for Dynacom and Samsung will provide a team to supervise the construction,” said one shipbuilding source.
He added that SHI will provide the design for the suezmaz tanker and it will arrange refund guarantees for the newbuildings.
“Samsung will procure the ships’ engines and materials. PaxOcean’s role is to build the tankers.”
In an email reply, SHI said it is unable to disclose its business activity due to contract confidentiality. PaxOcean was not available for comment.
PaxOcean Zhoushan is one of five shipyards under PaxOcean Group. One shipyard is in Singapore and three are in Indonesia.
PaxOcean offers a wide range of services, including integrated solutions, newbuildings, module fabrication, green recycling, repairs and retrofits and conversion of conventional and renewable energy assets.
PaxOcean Zhoushan’s shipbuilding site covers an area of 800,000 square metres and is equipped with two large dry docks that can accommodate vessels up to 400,000 dwt or container ships up to 24,000 teu.
PaxOcean’s website states that PaxOcean Zhoushan began operations in 2010 and has established a strong track record of providing quality and on-time services to our global customers, including repair projects for tankers, container ships, dry cargo, gas carriers and offshore rigs.
Clarksons’ Shipping Intelligence Network shows the shipyard has so far delivered 10 vessels, with the largest ship being a handysize bulker.
In 2018, it delivered one 26,000-cbm floating storage and regasification unit, the Karunia Dewata.
PaxOcean Zhoushan’s orderbook has 17 newbuildings excluding Dynacom’s four suezmax tankers.
It is constructing 40,000-dwt multipurpose vessels for Pacific Carrier Lines, as well as three 1,200-teu container ships for Langh Group, among other projects.
SHI is not new to China when it comes to building ships there.
It owns one block-making factory in Weihai and has worked with Henghi Heavy Industry and Zhoushan Changhong International Shipyard on the supply of ship blocks.
