Samsung Heavy Industries has sealed an order for two shuttle tanker newbuildings worth $127.5m each.

In a regulatory filing, the South Korean shipbuilding group said an “Oceania” shipping company ordered the pair, which will be delivered by the first half of 2025.

SHI did not disclose the size of the tankers or the identity of the company. However, shipbuilding sources following the yard’s ordering activities named New York-listed Tsakos Energy Navigation (TEN) as the buyer and said the order is for two 160,000-dwt crude shuttle tankers.

TotalEnergies is said to be behind the order. The French oil company floated a charter tender for the newbuildings a few months ago, when it was reported to be looking to have the tankers powered by conventional marine fuel. However, it wants the option to upgrade to LNG dual fuel later.

Around 10 companies were reported to be interested in the tender project, including TEN, Viken Shipping, KNOT Offshore Partners, AET and Altera Infrastructure (formerly Teekay Offshore Partners).

SHI, Hyundai Heavy Industries, DH Shipbuilding (formerly Daehan Shipbuilding) and China’s Cosco Shipping Heavy Industry Zhoushan Shipyard were the four yards contending for the project.

Shipbuilding sources were surprised that TEN has ordered the two suezmaxes at SHI, as the company was described as a client of DH Shipbuilding and HHI.

One shipyard executive said it was TotalEnergies, not TEN, that picked the shipyard.

“TotalEnergies picked Samsung to be the shipbuilder for the tanker newbuildings … it then chose TEN to be owner for the two ships,” the executive said.

The charter period for the newbuildings was not disclosed, but TotalEnergies was said to be offering long-term contracts. The ships will be used in Brazil.

SHI said it has already secured $8.1bn-worth of newbuilding orders this year, including the pair of shuttle tankers. It has now achieved 92% of its annual target of $8.8bn.

Last month, the Koje-based shipbuilder posted a third-quarter net loss of KRW 201.6bn ($142m), which it attributed to a delayed wage deal of KRW 80bn and KRW 88bn fixed costs arising from fewer working days in the summer.

The result was worse than the KRW 123.8bn loss a year earlier.

SHI also recorded a 5.7% fall in sales to KRW 14trn, with operating losses rising to KRW 166bn from the KRW 110bn loss a year ago.

SHI is confident that it is on course to achieve its annual newbuilding order target. It recently signed its first-ever VLGC newbuilding contract, worth KRW 271bn.

Eastern Pacific Shipping ordered two LPG-fuelled 88,000-cbm gas carriers for delivery by the end of 2025.

Samsung Heavy Industries is 8% away from its 2022 order target of $8.8bn. Photo: Irene Ang