South Korean shipping company Hyundai Merchant Marine (HMM) has signed a long-term crude oil shipping contract with compatriot oil refiner GS Caltex.
The contract, signed on February 1, 2018, is worth KRW 190 billion (around USD 177 million).
Under the deal, HMM will transport a total of 19 million tons of crude oil from the Middle East to South Korea over a period of five years from July 1, 2019, to August 31, 2024.
HMM said it plans to deploy two 300,000 dwt very large crude carriers (VLCC), ordered last September.
“We expect this long-term shipping contract with GS Caltex to further strengthen partnerships between HMM and GS Caltex. HMM will secure stable and consistent profits by increasing long-term contracts with a global customer base,” C.K. Yoo, CEO of HMM, commented.
The duo has been collaborating in crude oil shipping business more than twenty years.
In December 2017, another shipping company from South Korea signed a crude oil shipping contract with GS Caltex. Under the terms of the ten-year contract, Hyundai Glovis agreed to order one 300,000 dwt VLCC, transporting crude oil from Saudi Arabia and other countries from that region to Korea.