Tanker players are closely watching the efforts of Embiricos company Aeolos Management to sell a 20-year-old VLCC.
The sale effort comes amid a bullish secondhand tanker market, despite a weak spot freight market in the sector.
The 305,000-dwt tanker Kos (built 2001), built by Daewoo Shipbuilding & Marine Engineering, is currently open for inspection by potential buyers in Singapore.
The effort comes after Mercuria recently managed to secure $27m for another DSME-built VLCC. The 306,000-dwt Jupiter (built 2000) went to an undisclosed Chinese buyer. The trading giant had purchased the tanker from Greece's Maran Tankers for $19.5m in December.
Managers at Aeolos did not respond to requests for comments on the planned sale of the Kos.
The ship does not have as attractive dry-docking status as the Jupiter. It is due for special survey in July, whilst the Jupiter had its last special survey in March.
Current strong scrap prices also mean that a buyer is taking less of a risk, as it can recoup a large part of the investment in flipping the tanker for demolition.
The 44,000-dwt tanker Elka Angelique (built 2001), for example, was recently reported to be sold to breakers in Bangladesh for $590 per ldt.
Secondhand prices for old tankers have remained high even though freight earnings have failed to cover operating costs so far this year.
Experts attribute the bullish mood to limited yard capacity, rising steel prices and strong demand for old tonnage from operators involved in risky trades.
Aeolos is listed with a fleet of seven VLCCs with an average age of 13 years.
Last year, the company disposed of four vintage VLCCs in deals that raised about $100m in proceeds. The buyers are believed to be mainly from the Far East.
In early October, Aeolos reportedly sold its oldest ship — the 298,000-dwt Chryssi (built 2000) — for $22m.
In December, the company was linked to the purchase of the 318,000-dwt tanker Hua San (built 2008) for $30m, which earlier was in the fleet of Singapore-based Xi He Group.
That deal, however, has not been confirmed.
