Odfjell entered into shipbuilding contracts with Chongqing Chuandong Shipbuilding Industry, China (CCSIC), for construction of six stainless steel chemical tankers of 9,000 dwt for delivery between the fourth quarter of 2010 and the first quarter of 2012.
The parties have agreed to terminate three of the contracts. Under the termination agreements Odfjell will receive US $30 million, after repayment of bank loan associated with the three cancelled newbuildings.
The remaining three vesseles will be built at CCSIC, and estimated date of delivery is between December 2011 and April 2012. These tankers will replace smaller, owned vessels trading by Odfjell in the Asia Region.