Korea Shipbuilding receives contract termination for 10 VLCCs
The South Korean shipbuilding giant Korea Shipbuilding & Offshore Engineering (KSOE) has announced the termination of contracts for ten very large crude carriers by two of its subsidiaries (VLCCs).
Hyundai Heavy Industries was contracted to build seven VLCCs from the batch, while 3 VLCCs were expected to be constructed by Hyundai Samho Heavy Industries.
KRW 986 billion ($877 million) is the total value of the deal, Hyundai said in a regulatory filing.
KSOE reported that the contracts were terminated after the payment deadline had not been reached by an unnamed Oceania-based shipowner.
For 2020, amid a major downturn in the sector due to the effects of the Coronavirus pandemic, KSOE's units won orders for 116 ships worth about $10 billion, inching close to its $11 billion target.
For 2021, in the middle of an optimistic outlook on shipbuilding demand, the shipbuilder raised its goal to a combined $14.9 billion, Yonhap says.
Maritime Business World