Feature 1
Odfjell subtracts 12, adds seven
Tanker owner Odfjell has suffered a setback in its ship ordering plans in
Russia, but is pushing forward with orders in China.
F
ebruary saw Norwegian owner Odfjell The day after the announcement on
serve formal notice to Russian yard Sevmash, Mr Storeng was preparing to depart
Sevmash that it had cancelled an order for China to celebrate a first order with China
for 12 IMO type II, 45,000dwt coated product/ Shipbuilding Industry Corp’s Chuan Dong
chemical carriers. Shipyard to build a series of six plus four optional
The order was placed in 2004 with Sevmash, 9000dwt stainless steel chemical tankers. The
located near Archangelsk, in the expectation that
Odfjell cancels major project, but pushes
ships, which are destined for regional trades in
the first tanker would be delivered by September
forward with more orders in China.
Europe and Asia, will feature 14 stainless steel
2007. However, Odfjell chief executive Terje tanks and offer a total capacity of 10,500m
3
.
Storeng said that, as of mid-February 2008, ship They are due delivery between 2010-2012, with
one in the series had yet to be launched and that arbitration in Sweden, Odfjell said, as provided the first six firm orders having been placed for a
he had been advised that the yard would now be for in the contract. total price of $180 million.
expected to make the first delivery in May-June Mr Storeng said that, while Odfjell’s Chuan Dong is reckoned to be the first
2009. Work had also been started on a second immediate needs with respect to tonnage of Chinese yard to design its own stainless steel
ship. Since the contract was placed, he said, the this size were covered, no decision had been chemical carriers. Until recently, the yard focused
yard had persistently raised prices, with the made as to how its future requirements would on coastal tankers for domestic owners, but now
initial fixed total contract price for all 12 vessels be met. it is stepping into the international market, and
of approximately $500 million now running at Shipbuilder Sevmash expressed itself in a Odfjell is not alone in its preference for the yard.
$544 million. state of ‘bewilderment’ over the mooted claim Last year, Singapore-based IMC Group ordered
‘Following serious delays in the construction over willful misconduct. It had ‘performed its two 5500dwt stainless steel chemical tankers
process, combined with demands for further obligations to construct vessels in good faith from the yard.
price increases from the Yard, continuous and reason. However, an extremely ill-fated In a separate development, Odfjell’s 49%
cooperation problems as well as protracted contract provision of fixed prices for year owned joint venture company Odfjell Dong
negotiations, Odfjell decided… to serve formal 2004 and for the whole period of 12 vessel Zhan Shipping (Shanghai) Co has signed a
notice of cancellation to Sevmash,’ Odfjell said construction has caused funds shortage. Fair contract for the building of an 8200dwt chemical
in a statement. ‘The installments already paid price negotiations have given no results.’ tanker. The ship will be a fully coated IMO II type
are covered by standard refund guarantees The yard, which has not built chemical carrier that will be built by Zhoushan Penglai
from international banks. Odfjell will further tankers before, said it would carry on with Shipbuilding and Repairing Co, with delivery
claim full compensation for its costs and losses the construction project. On completion, scheduled for late November 2008. Odfjell will
caused, on account of willful misconduct and the 182m long, 32.2m wide by 18.35m deep be directly involved in the building process and
massive contract breaches by the Yard.’ vessels would be put up for sale on the open inspection at the building site. The ship will join
Unless matters were resolved amicably market, with a view to breaking even on the Bao Hai Tun (3845dwt/ built 2006), and service
between the parties, the issue would be taken to construction. the domestic market in China. NA
The Naval Architect March 2008 33
NA Mar 08 - p33.indd 33 10/03/2008 12:01:07
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