Hanwha Ocean Wins $265 Million Order for Two VLCC Tankers

Hanwha Ocean has secured a $265 million contract to build two very large crude carriers, or VLCCs, the South Korean shipbuilder confirmed, in a deal that strengthens its position in the global tanker market.

Very large crude carriers are among the biggest vessels afloat, each capable of hauling roughly two million barrels of oil on long-haul routes between the Middle East, Asia and beyond. The size and complexity of the ships make them a lucrative, high-margin niche for the world's leading yards.

The latest order adds to a backlog that has been swelling for Hanwha Ocean and its Korean rivals, as owners renew aging fleets and position for shifting global crude trade flows. A deep order book gives shipbuilders greater pricing power and revenue visibility for years to come.

Hanwha Ocean, the former Daewoo Shipbuilding & Marine Engineering, was acquired by Hanwha Group in 2023 and rebranded as part of the conglomerate's push into shipbuilding, defense and offshore energy. Since the takeover, the company has leaned on Hanwha's financial muscle to chase higher-value contracts.

Korean shipbuilders have increasingly focused on premium, technically demanding vessels such as VLCCs, liquefied natural gas carriers and eco-friendly ships, ceding lower-margin work to Chinese competitors. That strategy has helped sustain strong pricing even as global newbuilding activity fluctuates.

The two crude carriers are expected to be delivered in the coming years, contributing to Hanwha Ocean's revenue as it works through its expanding order pipeline. The company has not disclosed the identity of the buyer.