Shanghai-based COSCO SHIPPING Development said on Wednesday it had ordered 16 very large crude carriers (VLCCs) worth 13.43 billion yuan ($2.01 billion) from China State Shipbuilding Group.

A VLCC is a class of massive oil tanker with a deadweight tonnage (DWT) typically ranging from 200,000 metric tons to 320,000 metric tons.

Here are more details:

• COSCO said its unit Oriental Fleet International entered into contracts with affiliates of China State Shipbuilding Group for 16 307,000 DWT-class VLCCs

• The methanol- and LNG-ready vessels will cost about 839 million yuan each and will be funded through a mix of internal resources and external financing

• The tankers will be built by Dalian Shipbuilding Industry and delivered between late 2029 and 2030

• COSCO also said it plans to lease all 16 vessels to Pan Cosmos Shipping & Enterprises, a unit of COSCO SHIPPING Energy, under 20-year bareboat charter agreements

• The leases will provide long-term stable income and cash flow while expanding the scale of the group's ship leasing business, the company said

• In a separate statement, COSCO SHIPPING Energy said it expected annual rent for the 16 tankers to range from 680 million yuan to 1 billion yuan, once the deliveries commence

• The average daily rent amounted to 116,520 yuan/vessel, excluding tax, the firm added

• COSCO SHIPPING Development, a unit of China's COSCO SHIPPING Corporation, primarily deals with the production of standard dry cargo containers, refrigerated (reefer) containers, special containers and related equipment

($1 = 6.6742 Chinese yuan renminbi)

(Reuters)