South Korean shipping company Korea Line Corporation has signed a contract with oil refiner GS Caltex for the transportation of crude oil.
Under the KRW210 billion (US$197 million) deal, Korea Line will transport crude oil between the Middle East and Korea.
Two new 300,000DWT crude oil carriers will be employed for the job. The company is in discussions with South Korean shipbuilders to construct the VLCCs.
The contract is scheduled to start at the end of December 2019, lasting until January 1, 2026.
The deal comes after a 25-year, US$608 million deal with Brazilian miner Vale for two bulk carriers to transport iron ore from Brazil to China.
The 325,000DWT bulkers, which are scheduled for delivery in 2020, were ordered in October from Hyundai Heavy Industries.
Hyundai Merchant Marine also signed a five-year crude oil shipping contract with GS Caltex that will involve the transportation of 19 million tonnes of crude oil from Saudi Arabia and the Gulf from July 2019 to August 2024.