Addition of tankers in the works at STX boosts South Korean owner��s fleet by 30%

KUKJE MARITIME INVESTMENT Corp (KMARIN) of South Korea is expanding its fleet with 10 aframax tanker newbuildings belonging to BP Shipping.

Sources say the oil major has struck a deal to sell the 110,000-dwt vessels it has under construction at STX Offshore & Shipbuilding to the tonnage supplier and bareboat charter them back.

No details of the agreement have been disclosed, although it is known to include a purchase option for the seller.each.KMARIN is the equivalent of a German KG (limited partnership) and Norwegian KS owner and one of the five shipping Officials at KMARIN decline to comment.

BP booked the newbuildings at STX at the end of 2012 for delivery starting late this year and into 2015.

However, the owner and the yard reworked the contract at the end of last year and now the vessels are due to be handed over from the second half of 2015 and in 2016. They are said to be costing $47.5m each.

KMARIN is the equivalent of a German KG (limited partnership) and Norwegian KS owner and one of the five shipping-investment management companies (SIMCs) that Korea introduced in early 2003 to help domestic owners expand their fleets, as well as providing low-cost finance.

Industry players say KMARIN was formerly known as Seoul Marine Finance (Semarf). Its name changed two years ago when it was bought by Hyundai Heavy Industries (HHI)��s finance arm, Hi Investment & Securities. A few key personnel at KMARIN are said to be former employees of Hi Investment, including chairman Jun Kyoung Hong (Justin).

BP��s aframaxes will swell KMARIN��s owned fleet from 19 to 29 when the deal is completed. The fleet now comprises four VLCCs, six ultramax and six supramax bulkers, two handysize bulkers and one 4,532-teu boxship. In addition, KMARIN also has ��indirect operation and management�� of 13 vessels that belong to ��acquainted�� shipping investors. In total, it controls 32 ships, excluding the BP tankers.

KMARIN��s charterers include domestic companies such as Hyundai Glovis, SK Shipping, Pan Ocean and Hyundai Merchant Marine. It also fixes out its ships to foreign operators and traders such as Olam International and Cargill.