STX in $579m Deal with Navig8

STX Offshore & Shipbuilding Co. has landed a $580 million contract to build twelve Long Range 1 (LR1) oil tankers.

The debt-laden S. Korean shipbuilder announced, on Feb 28th, the order from Navig8 Product Tankers Inc. for the construction of eight + four 74,000 DWT class tankers.

Delivery of the vessels should be completed by the end of June 2016, reports Yonhap.

The order is among the first for the shipyard since July last year when STX O&S, due to financial difficulties, entered into the Voluntary Business Normalization Program. Creditors, including Korea Development Bank, recently decided to provide additional cash injection of KRW 1.8 trillion ($1.68 billion), to promote normalization of the business.

[mappress]
SBT Staff, March 3, 2014