On August 27, COSCO Shipping Development Co., Ltd. (hereinafter referred to as “COSCO Shipping Development” or “the Company”) issued an announcement on “Regarding the Wholly-Owned Subsidiary’s Engagement in LNG Vessel Sale-and-Leaseback Business”.
As disclosed in the announcement, in accordance with the resolution of the 29th Meeting of the Seventh Session of the Board of Directors of COSCO Shipping Development on August 26, 2025, Oriental Fleet Shipping 08 Limited (hereinafter referred to as “Oriental Fleet”), a wholly-owned subsidiary of COSCO SHIPPING Development, entered into the Memorandum of Agreement on Vessel Leasing and the Bareboat Charter Party with ORYX LNG No.10 Shipping Corporation (the charterer), a subsidiary of Mitsui O.S.K. Lines, Ltd. (MOL). It is agreed therein that a sale-and-leaseback transaction for one LNG carrier with a capacity of 271,000 cubic meters (hereinafter referred to as the “Target Vessel”) will be carried out.
The agreement stipulates that Oriental Fleet will purchase the vessel from ORYX LNG No. 10 Shipping Corporation for approximately RMB 257,893,350 (approximately US$360,535,000). Upon delivery, Oriental Fleet will lease the vessel back to ORYX LNG No. 10 Shipping Corporation on a bareboat charter basis for a period of 240 months, with an estimated total lease payment of approximately RMB 318,246,500 (approximately US$444,909,000). The target vessel is expected to be delivered around July 2029, subject to adjustment based on the relevant shipbuilding contracts signed by Oriental Fleet.
According to the announcement, ORYX LNG No. 10 Shipping Corporation is a company incorporated under the laws of Liberia. As of the date of this announcement, the company is a wholly-owned subsidiary of Mitsui OSK Lines, primarily engaged in ship leasing.
COSCO Shipping Development stated that this transaction will further leverage industrial and financial synergies, expand the scale of its ship assets, enhance the quality of its ship assets, and solidify the foundation for its ship leasing business. This will generate stable long-term revenue and cash flow, enhance the company’s overall financial stability, and strengthen its long-term growth momentum. Furthermore, by investing in new ship types, high-end, multi-functional, and premium shipping capacity, the company will support global energy conservation, emission reduction, and sustainable development strategies, and facilitate the transformation and upgrading of traditional industries.