Odfjell Terminates Shipbuilding Contracts in China

In January 2008, Odfjell entered into shipbuilding contracts with Chongqing Chuandong Shipbuilding Industry China (CCSIC), for construction of six stainless steel chemical tankers of 9,000 dwt for delivery between the 4th quarter of 2010 and the 1st quarter of 2012.

The parties have today agreed to terminate three of the contracts. Under the termination agreements Odfjell will receive USD 30 million, after repayment of bank loan associated with the three canceled newbuildings.

The remaining three vessels will be built at CCSIC, and estimated date of delivery is between December 2011 and April 2012. These tankers will replace smaller owned vessels trading by Odfjell in the Asia Region.