NEWS / December 23, 2008

Navig8 cancels product tankers order

The significant diversification by Drydocks World Dubai into the mainstream newbuilding market has been dealt a major blow, following with the cancellation of a newbuilding contract for four MR product tankers by Singapore-based Navig8 Group.


The tanker operator, which only started business in March 2007, is blaming its decision to pull out of the Dubai deal on poor market conditions. However, Navig8 spokesman Modi Mano said that “the contract was cancelled mutually between the shipyard and ourselves”.

He would not be drawn further on the reasons behind the order being pulled, nor would he confirm the contract price.

The four 53,500 dwt double-hull tankers were scheduled for delivery in 2010 and 2011. Navig8 also held an option on a further four vessels of the same class. No details have been given by the shipyard or the owner about compensation terms.

Steel cutting on the product tankers had yet to start, as DWD is busy with the construction of eight sophisticated seismic survey vessels for Norwegian and UAE owners.

Two of these vessels are being built for Norway’s Western Geco, and are expected to be operated by recently acquired Dubai-based operator Eastern Echo. Another six vessels are under construction for Dubai’s newly established Polarcus. All of the new buildings are of the unique Ulstein Design X-bow design and are due for delivery from the second half of 2009 through to the end of 2010.

Navig8, meanwhile, has a number of tankers under construction at shipyards in the Far East; two 114,000 dwt product tankers at China’s New Times Shipbuilding, four 75,000 dwt tankers at Korea’s Sungdong Heavy Industries and one 6,800 dwt vessel at China’s Jiangmen Shipyard.