Kuwait Oil Tanker Co ( KOTC ) expects to receive a total of nine new tankers from South Korean companies in 2014/2015 as part of its announced $1.75 billion fleet expansion, the company's chairman told a newspaper.
KOTC will get five crude tankers from Daewoo Shipbuilding & Marine Engineering 042660.KS and four more for petroleum products from Hyundai Mipo Dockyard 010620.KS chairman Bader al-Khashti told Kuwaiti daily al-Rai in an interview published.
This will be the third phase of its tanker expansion.
"It is expected that we will receive all of the nine tankers during the fiscal year 2014/2015," he said.
State-owned KOTC will be paying around $556 million for the new ships from Daewoo.
Daewoo is also upgrading four existing tankers as part of a deal signed with KOTC in January, Khashti said.
In the fourth phase of its fleet expansion which will take place between 2014-2018, the Kuwaiti group plans to buy five more tankers to carry oil products and three more for liquefied natural gas (LNG), he said. This will bring KOTC's fleet to 31 tankers by 2017/2018, he said.
The total cost of the phase three and four expansion will be 493.5 million Kuwaiti dinars ($1.75 billion) he added.
OPEC member Kuwait pumps around 3 million barrels a day.