Dubai Drydocks announced in June that it has concluded an agreement with Singapore-based Navig8 to build four medium range (MR) product tankers, with an option for four more vessels.
The deal is valued at US$175 million and is the biggest-ever signed by Dubai Drydocks. The contract will launch Dubai Drydocks into the arena of building larger merchant vessels, and generate awareness benefiting the entire Middle Eastern shipbuilding community.
The vessels are scheduled for delivery between 2009 and 2010. A deal on the option for four more tankers will be considered by December 2007.
Dubai Drydocks, which entered the capital intensive ship building business just last year, won the contract from Navig8 after beating back tough competition from major international rivals.
"This is a very special moment for Dubai Drydocks as we conclude the agreement with Navig8. This is the largest contract in terms of total value that Dubai Drydocks has signed so far. With this agreement, Dubai Drydocks takes on the challenging task of building a new range of MR tankers. We look forward to a fruitful partnership with Navig8," said Nawal Saigal, managing director of Dubai Drydocks.
The deal follows the successful foray into the highly competitive Far Eastern market by Dubai Drydocks' parent company, Drydocks World through the acquisition of Pan-United Marine, one of Singapore's largest shipyards, and signals the arrival of Dubai Drydocks as a major international ship builder.
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