Shell has floated an enquiry for a large tranche of MR product and handysize chemical tankers that could stack up at 30 newbuildings worth over $1.2bn.
Newbuilding sources said that under its “Project Solar”, Shell is seeking up to 16 handysize chemical carriers comprising 10 firm ships with three additional pairs of options.
The British-Dutch energy major is also looking for a further eight IMO type 2 MR tankers made up of four newbuildings plus two sets of two optional slots.
Shell also needs two MR tankers with the same combination of two pairs of optional slots.
Those following the business said the vessels would likely be ordered by existing owners against charter or leaseback deals to Shell, mirroring earlier moves by the major to access multiple newbuildings.
A spokesman for Shell said the company could not offer comment on the market talk.
Brokers price MR tanker newbuildings of around 50,000 dwt in the region of $36.5m to $37m per vessel. They stress that for IMO type 2 vessels, which are capable of carrying more chemicals, the price is likely to be significantly higher if a large number of tanks are specified.
They comment that there has been little concluded for 35,000-dwt to 38,000-dwt handysize chemical carriers but mention that specifications could add between $5m and $10m to the price.
Brokers say Shell has specified Interline coating on some of them.
This gives greater flexibility in terms of the types of cargoes the vessels are able to carry but its application needs particular care.
Details on the major’s choice of fuelling options for the ships has still to emerge but could also dictate on pricing.
South Korean shipbuilder Hyundai Mipo Dockyard (HMD) is seen as a hot contender for the work. Compatriot yards Daehan Shipbuilding and STX Offshore & Shipbuilding could also be in the frame but their financial standing could prove a factor.
Chinese shipbuilders such as Guangzhou Shipyard International and New Times Shipbuilding could also be in the running, although newbuilding players suggest both have healthy orderbooks at present and question if they would be able to accommodate this work.
Shell’s early day moves on the raft of vessels is understood to have emerged a few months ago when confidentiality terms were signed with shipyards.
But talk of the project’s code name — referred to as both “Project Solar” and “Project Solo” as the Chinese whispers rattling round the market gathered pace — has spurred talk and given a hint at Shell’s broker on the project.
The client-tagged name echoes previous Shell big-ticket newbuilding deals.
In 2012, Shell emerged in the market for a whopping 50 MR product tankers under “Project Silver”, a newbuilding enquiry handled by shipbroker Clarksons.
The company eventually bareboat chartered 30 of the 52,000-dwt ships from Sinokor Merchant Marine with the South Korean owner contracting the ships at HMD at what was then seen as a rock-bottom price of around $31m each on the back of long-term charters to Shell.
Oman Shipping Co signed up to 10 of the newbuildings, Dubai-based Tristar Energy for six and Adamantios Lemos-controlled Unisea Shipping four.
The major followed this up with “Project Oval” a few years later, this time seeking a series of LR1 tankers and later "Project Admiral" on aframaxes.
