Seoul: Hanwha Ocean Co., the shipbuilding arm of South Korea's chemical-to-defense conglomerate Hanwha Group, announced it has secured a 375.3 billion-won (US$255 million) order to construct two very large crude carriers (VLCCs) for a client in the Oceania region.

According to Yonhap News Agency, these two VLCCs are scheduled for delivery to the unidentified shipping company by December 2028, as per a regulatory filing by Hanwha Ocean. The recent rise in VLCC freight rates is attributed to increased oil production and exports by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, industry officials noted.

Furthermore, a growing demand for replacing aging VLCCs is anticipated to support the market, according to the officials. OPEC+ is comprised of eight countries: Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, Saudi Arabia, and the United Arab Emirates.

With this latest contract, Hanwha Ocean has amassed US$7.96 billion in vessel contracts so far this year.