Kuwait Oil Tanker to Sign $142 Million Contract With Daewoo

http://www.businessweek.com/news/2010-06-28/kuwait-oil-tanker-to-sign-142-million-contract-with-daewoo.html

By Fiona MacDonald

June 28 (Bloomberg) -- Kuwait Oil Tanker Co. will sign a $142 million contract with South Korea’s Daewoo Shipbuilding & Marine Engineering Co. Ltd. for two vessels for oil products, KUNA reported, citing KOTC Chairman Nabil Bouresli.

The tankers, to be handed over in 2012, will each have a capacity of 110,000 tons, Bouresli said, according to the state news agency. The construction of the tankers is part of a plan by the unit of state-owned Kuwait Petroleum Corp to modernize its fleet and operate 33 tankers, Bouresli said.

Kuwait Oil Tanker signed a $708 million contract with Daewoo in August 2008 for four very large crude carriers.

Kuwait, the third-largest producer in the Organization of Petroleum Exporting Countries, plans to raise its output capacity to 4 million barrels a day by 2020. The country pumped 2.35 million barrels of oil a day in May, according to Bloomberg data.

--Editors: Rob Verdonck, Bruce Stanley

To contact the reporter on this story: Fiona MacDonald in Kuwait at fmacdonald4@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net