Korea Shipping Signs $197 Million Crude Oil Transport Agreement
Korean shipping company Korea Shipping announced that it has signed a crude oil transportation agreement with South Korean oil refinery GS Caltex.
The company said that the crude oil transportation agreement signed was 210 billion won (about 197 million U.S. dollars) and two crude oil vessels will be deployed for GS Caltex to transport crude oil between the Middle East and South Korea.
In a regulatory document, Daehan Shipping stated that the contract is scheduled to begin at the end of December 2019 and continue until January 1, 2026. The company said that the contract revenue is equivalent to 38.96% of previous year's revenue.
As of now, Korean shipping sales reached 540 billion won (approximately 507.8 million U.S. dollars) in 2018. Previously, the company also signed a long-term $608 million transportation agreement with Brazil's Vale in February of this year to deploy two bulk carriers for Vale to transport iron ore from Brazil to China for a period of 25 years.
In October 2017, Daehan Shipping established 2 325,000 dwt bulk carriers at Hyundai Heavy Industries. It is expected that it will begin to provide transportation services for Vale after delivery in 2020.