South Korean shipping company Pan Ocean is accelerating its expansion into the crude oil transport market through a new shipbuilding project, with the aim of continuing its transition from traditional dry bulk operations to the tanker transport market.
On May 14, Pan Ocean announced that it plans to invest 783.4 billion won (approximately $525 million) to build four Very Large Crude Carriers (VLCCs), with each vessel costing about $131 million. Delivery is expected in 2031. The shipowner is affiliated with Hahn & Company, a leading South Korean private equity firm.
Hahn & Company has not yet disclosed the shipyard for the four VLCCs, but according to industry sources, these new vessels are being constructed by Hanwha Ocean.
As an international shipping company with dry bulk shipping as its core business, Pan Ocean is currently accelerating its expansion into the crude oil transportation sector through both newbuilds and secondhand vessels.
In June 2025, Pan Ocean announced the order of two 300,000 DWT eco-friendly VLCCs from HD Hyundai Heavy Industries at a unit price of $127.5 million, marking the start of this round of new VLCC construction.
The new vessel from HD Hyundai Heavy Industries is expected to be delivered in the third quarter of 2027, marking the end of Pan Ocean’s five-year “order drought” for VLCCs. Prior to this, Pan Ocean’s last VLCC order was placed in 2020, when it ordered two 300,000 DWT VLCCs from Daewoo Shipbuilding & Marine Engineering (now Hanwha Ocean) at a cost of $90 million per vessel.
In March 2026, Pan Ocean turned its attention to Chinese shipyards, placing an order with CSSC Beihai Shipbuilding for one 319,000 DWT ammonia-ready VLCC at a cost of $122 million, with delivery expected by the end of 2029. As a long-term partner of Beihai Shipbuilding, Pan Ocean also placed orders this year for two 211,000 DWT bulk carriers at the shipyard, with a construction cost of approximately $77 million per vessel. Delivery is scheduled to take place by the end of March 2031.
The latest shipbuilding project announced further underscores Pan Ocean’s commitment to transitioning into the tanker market. In addition to placing new orders, the shipping company’s investments in second-hand VLCCs are also worth noting.
Earlier this year, Pan Ocean announced a deal worth nearly $700 million to acquire 10 VLCCs from fellow South Korean shipowner SK Shipping, significantly expanding its operations in the crude oil tanker market. As the transaction includes the transfer of related long-term charter contracts involving several major South Korean cargo owners, it is expected to be completed by April 11, 2027.
In the first quarter of 2026, Pan Ocean reported operating revenue of approximately 1.51 trillion won and operating profit of approximately 141 billion won. The company currently holds orders for 16 newbuilds, including 8 oil tankers and 8 bulk carriers, with delivery scheduled between 2026 and 2030.