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HUA SAN

October 29, 2008

Shanghai yard delivers first VLCC built to new rules

China's Shanghai Waigaoqiao Shipyard (SWS) has delivered the first very large crude carrier (VLCC) built to Common Structural Rules (CSR).

The 318,000-dwt Hua San, the first of 11 VLCCs confirmed to Lloyd's Register class at Shanghai Waigaoqiao, was delivered to Singapore's Ocean Tankers (Pte) Ltd. five months ahead of schedule.

Tankers built to the International Association of Classification Societies' Common Structural Rules, which are applied to new ships contracted on or after April 1, 2006, feature increased strength requirements and more robust fatigue-related construction designed to make them safer and more dependable to operate. CSR design requirements target a vessel life of 25 years under North Atlantic operational conditions.

The Hua San is not only the first VLCC built to CSR, it is also the biggest vessel by weight ever built in China. The ship is the first of an initial order of six VLCCs ordered by Ocean Tankers at Shanghai Waigaoqiao, four of which were classed to Lloyd's Register. Ocean Tankers last year returned to the yard for another order of three VLCCs, with three options, again awarding the class for the confirmed ships to Lloyd's Register.

"With the growth in demand for crude oil in China showing no sign of abating, it is anticipated that this market will require another 40 to 50 VLCCs in the next five years," said Chen Minjun, President of Shanghai Waigaoqiao Shipyard. "We therefore believe the future demand for this type of ship is very promising."

Shanghai Waigaoqiao's annual production has increased almost three-fold in for years and now totals 3.53 million dwt. It has also developed a series of Aframax and Capesize bulkers as well as a 3,000-m semi-submersible drilling platform and high specification Floating Production Storage and Off-loading units.

The basic design for the VLCC was created by Korea Marine Consultants with the detail and production design completed by in-house designers at SWS. Both were supported at a very early stage of development by the Shanghai Design Support Office of Lloyd's Register Asia.

"We are obviously very proud to have supported the design, construction and now delivery of the world's first VLCC built to Common Structural Rules. That the vessel was delivered well ahead of schedule is a testimony to the professionalism of our partnership with Ocean Tankers and Waigaoqiao Shipyard," said Nick Brown, General Manager China for Lloyd's Register Asia. "With a global recession looming and financing harder to find, the industry spotlight rightly has intensified on maintaining the construction of quality ships. The success of this project is the result of our strategy to work with yards and owners who share our vision for quality."


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