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STX O&S Wins Contract for Two LR1 Tankers
March 19, 2015


After having obtained a contract for four LR1 tankers last December from BW in Singapore, STX O&S won a contract for two more LR1 tankers from the same shipping company, and the total contract price is $293 million. The LR1 tankers will be delivered from 2016 to 2017 one by one.


The LR1 tankers will be built as an eco-friendly and high efficiency type which reduces fuel consumption and exhaust gas to the maximum. After an agreement with creditors last year, STX O&S has focused on small and medium ships. Therefore, STX O&S has tried to get a contract for medium tankers and the orders on hand are filled principally with MR and LR1 tankers.


STX O&S has recently monopolized the market of LR1 tankers and become the frontrunner of medium tankers. However, STX O&S is not satisfied with the market of medium tankers, but carries out an aggressive marketing campaign to get contracts for 11,000~21,000 TEU large containers, whose design was recently improved by STX O&S, large tankers, including VLCC, whose market is expected to be recovered due to falling oil prices, and LNG carriers, which is strategically important for STX O&S.


The person concerned told that STX O&S will improve competitiveness through selection and focus, and also invest much more in R&D on large ships and high value-added ships for the future.

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