Reuters has reported that a new joint venture of Algerian energy group Sonatrach and Japan's Kawasaki Shipbuilding Corporation signed a $120m deal to buy a tanker from a Chinese-Japanese firm, Sonatrach said.
The 50-50 venture set up on Tuesday, called NOVL, signed the purchase agreement with NACKS Shipyard, a joint venture between Chinese company COSCO and Kawasaki , Sonatrach said in a statement on its Web site.
Construction of the very large crude carrier (VLCC
), with a capacity of 315,000 cubic metres, will begin in China from next February for delivery in December 2007, the statement said.
Banks will finance 80 percent of the purchase value, while Sonatrach and Kawasaki are set to ensure the remaining 20 percent, it added.