Spanish energy company Repsol has launched a tender process for 1+1 Suezmax shuttle tankers, with delivery scheduled for 2028, according to Trade Winds. The move is aimed at increasing offshore crude oil production and transportation capacity.
Since the construction cost of shuttle tankers is 30% to 40% higher than that of traditional tankers, the cost of a single vessel in the Repsol project is expected to be between US$145 million and US$150 million, which is in line with recent market prices.
HD Hyundai Heavy Industries, Samsung Heavy Industries, Hanwha Ocean, DH Shipbuilding and other major South Korean shipyards have submitted preliminary bidding proposals. Industry insiders said Samsung Heavy Industries and Greek owner Angelicoussis Shipping Group (ASG) are the most likely combination to win new vessel orders and new vessel charters.
This year, Samsung Heavy Industries has received an order for nine 158,000 dwt Suezmax shuttle tankers from Greek shipowner Tsakos Energy Navigation (TEN). The total order value is approximately US$1.33 billion, with a single vessel cost of approximately US$148 million. Its offer price is consistent with Repsol’s expected price.
Repsol currently operates a fleet of more than a dozen small and medium-sized tankers or gas carriers, and has a three-year fixed charter for the 158,600 dwt Suezmax tanker Runner built in 2017. It is unclear how Repsol will operate up to two of the new vessels.
According to data released by Repsol last September, the company’s capital expenditure plan for the period from 2024 to 2027 ranges between €16 billion and €19 billion, allocated to “attractive projects across the value chain.” This includes offshore exploration projects scheduled to commence production in Brazil and the Gulf of Mexico in 2027 and 2028.
Repsol is expanding offshore crude oil production in Spain, South America and the North Sea. The strategy of building new shuttle tankers improves the efficiency and safety of crude oil transportation in offshore oil fields. In the long term, the company also intends to implement ESG (Environmental, Social and Governance) management by introducing environmentally friendly and efficient ships.
As a specialized vessel, shuttle tankers can load crude oil produced from offshore oilfields directly from the sea and transport it to onshore terminals or refineries. Compared with traditional crude oil carriers, shuttle tankers are equipped with advanced technologies such as dynamic positioning systems, which can accurately locate crude oil in the midst of waves and currents and safely transport crude oil at sea.
Suezmax tankers are the largest tankers that can pass through the Suez Canal (about 150,000-160,000 dwt), and are one of the largest shuttle tankers, suitable for transporting large quantities of crude oil from offshore oil fields.
Recently, with the active development of offshore oil fields in Brazil, Norway and the UK, the market demand for shuttle tankers has been gradually increasing, and new vessel orders have followed. Global newbuilding demand for shuttle tankers is expected to stabilize at around five to seven vessels per year from 2025-2030, with growth also expected from offshore field development in Brazil, the North Sea and West Africa.