Hyundai Merchant secures deal with refiner to carry crude for five years

Lim Chang-won Reporter Posted : 2018-03-20 16:24 Updated : 2018-03-20 16:24
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[Hyundai Merchant Marine]

SEOUL -- South Korea's top shipping company, Hyundai Merchant Marine, forged a five-year deal Tuesday with GS Caltex, a domestic refiner, to carry about 19 million tons of crude from the Middle East by using two very large crude carriers (VLCCs).

Hyundai Merchant said that under a deal worth 190 billion won (178 million US dollars), the shipper will carry crude for GS Caltex from July 1, 2019, to August 31, 2024, using two 300,000-ton VLCCs built at a domestic shipyard in a government-financed program.

GS Caltex, a joint venture between Chevron and the GS Group, provides more than one-third of South Korea's oil needs. In 2016, Hyundai Merchant was selected as the first serious target of government-led corporate restructuring due to a liquidity crisis caused by falling freight rates and high chartered fees. It has been under a rehabilitation program by creditors.