Shipbrokers have tied Transocean Maritime Agencies to the purchase of what would become its largest tanker — and which would mark the Monaco-based shipowner's entrance into the LR1 product carrier sector.
Several broking houses said the company has purchased the 74,900-dwt Iris Victoria (built 2010) from Japanese shipping giant Mitsui OSK Lines.
The reports offered varied prices on the deal, ranging from $17.35m to $17.8m.
MOL declined to comment on reports of the sale, and an executive at Transocean did not immediately respond to a request for comment.
Led by chief executive Ruth McLoughlin, Transocean's fleet of 18 vessels is made up mostly of bulkers. But in 2018, the company jumped into the tanker sector, where it now owns five MR product carriers.
The sale of the Iris Victoria represents stable to slightly increasing prices for vessels of this type.
According to Clarksons, MOL sold the sistership Velos Diamantis (ex-Justice Victoria, built 2010), which is now in the fleet of Greece's Velos Tankers, in August for $17.2m.
Both ships were built at Minaminippon Shipbuilding in Japan and have no ballast water treatment systems or scrubbers installed.
Market sources said prices are on the rise as the tanker sale-and-purchase market feels the knock-on effect of rising scrap prices.
VesselsValue estimates that the Iris Victoria is worth just $16.8m, while MSI Horizon puts its value at a much higher $19.5m.
Market sources said MOL, a Tokyo-based owner of more than 400 ships and newbuildings, considered the Iris Victoria to be too old ahead of looming rules on carbon efficiency for existing ships.
The sources said the company is also cutting back on its product tanker fleet amid lower Japanese naptha imports.
While the shipowner is certain to be taking a loss on the sale after ordering the Iris Victoria for more than $60m, that will be a drop in the bucket compared to Tokyo-listed MOL's strong profits in the containership sector.
The vessel and its sistership were the oldest of five LR1 tankers with Victoria in their names. The remaining three were built in 2011 and 2012.
