Iran Strikes $2.4bn Ship Order with Korea

Maritime Activity Reports, Inc.

June 8, 2016

Image: Itexpo Team

Image: Itexpo Team

 Iran has placed orders worth around $2.4 billion with South Korean shipyards for the construction of ships to carry Iran’s oil and petrochemical products, The Wall Street Journal says. 

 
The orders have been placed by the Islamic Republic of Iran Shipping Lines (IRISL) and the oil producer Iranian Offshore Oil Company (IOOC).
 
The Korean companies involved in the case are Hyundai Mipo Dockyard, which is a subsidiary of shipbuilding giant Hyundai Heavy Industries Group, as well as Daewoo Shipbuilding and Marine Engineering Company.
 
It has signed a memorandum of understanding with Hyundai Mipo Dockyard, a subsidiary of shipbuilding company Hyundai Heavy Industries Group, for as many as 10 petroleum-product tankers and at least six so-called handysize bulk carriers.
 
Product tankers cost about $30 million each and handysize bulkers about $20 million apiece. IRISL also is in talks with Hyundai Heavy for as many as six, 14,500-container ships.
 
China’s Dalian Shipbuilding Industry Company is also in talks with IRISL over new ship orders, the Journal has quoted people close to the case as saying.   
 
The agreements are part of Iran’s efforts to make a comeback in global shipping after the lifting of international sanctions earlier this year, but completing the orders will depend on financing that the Iranians have not yet secured, the paper said.
 
Separately, Daewoo Shipbuilding & Marine Engineering Co (DSME) is reported to be in advanced talks to sign an MoU for at least five jack-up rigs worth at around USD 205 million each.
 
The post-sanction cooperation between the two nations has also seen DSME sign a business agreement on operation and technology instruction with the Iranian government for Iran Shipbuilding & Offshore Industries Complex Co. (ISOICO).
 
IRISL is a major Iranian shipping company that operates about 115 oceangoing vessels, with a total capacity of 3.3 million deadweight tons. IOOC is a subsidiary of state oil giant National Iranian Oil Company (NIOC), which has a third share of Iranian oil exports. 
 
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