China Eximbank pledges loan to Oman Shipping Company for the acquisition of 4 very large ore carriers

On August 16, 2010, the Export-Import Bank of China and Oman Shipping Company (OSC) signed a framework agreement regarding the provision of a loan to OSC to finance the construction and acquisition of four very large ore carriers (VLOCs). Under the terms of the agreement, China Eximbank agreed in principle to help OSC finance the purchase of four 400,000 dwt VLOCs from privately-held Chinese shipbuilder Jiangsu Rongsheng Heavy Industries Co., Ltd.. The proceeds of the loan would have been used to help finance a $483,000,000 USD commercial contract that OSC signed with Jiangsu Rongsheng Heavy Industries Co., Ltd. in July 2009. It is unclear if China Eximbank and OSC ever finalized a loan agreement for the construction and acquisition of the vessels. The vessels were planned to transport iron ore pellets from Brazil to the Sohar Industrial Estate in Wilayat, Sohar, Oman. The first two tankers were expected to be delivered by the end of 2011, while the other two were expected to be delivered in 2012. The first ship, LIWA MAX, was delivered to OSC in August 2012. The second, SOHAR MAX, was delivered to OSC in September 2012. The third ship, SAHAM MAX, was delivered to OSC in January 2013. The fourth and final ship, SAHAM MAX, was delivered to OSC in March 2013. As of 2021, all ships remained in service with OSC.

Additional details

OSC is a closed joint stock company that is owned by the Government of the Sultanate of Oman through Asyad Group (Oman Global Logistics Group) (79.9%), Oman Oil Company (20%) and Oman Rail (0.01). The company undertakes a number of shipping related activities via the following subsidiaries: Oman Ship Management Company SAOC (OSMC), Oman Charter Company SAOC (OCC) and Oman Container Lines (OCL) Inc.

Number of official sources

3

Number of total sources

11