The large-scale order plan of the Chinese government for Very Large Crude Carrier (VLCC) is getting materialized in accords with its policy, “Chinese oil must be shipped by Chinese shipping company.”  
Up to the present from the end of last year, a total of 18 vessels (including the eight options) were ordered and the industry eyes on it if it can reach its aim, 50 vessels.
Dalian Shipbuilding Industry (DSIC) of China, a subsidiary of China Shipbuilding Industry Corporation (CSIC) is said to have been placed an official order for five VLCCs from the state-run China Merchants Energy Shipping (CMES) on February 1. CMES said in a regulatory filing that it signed a newbuilding contract for three environmental-friendly 319,000DWT VLCCs plus two options with DSIC.
The newbuilding price is said to be approximately $85m per a ship and the delivery is scheduled between December, 2014 and the first half of 2015. The two options are said to be due within six months to come with the same price.
The state-run shipping company said that the price for the three vessels (Hull No. T300K-58, T300K-59 and T300K-60) will be provided in the form of the combination of the private placement of stock and the shipping finance.
The payment condition is that the 10% of the total price is paid four times with three intervals in advance and the remaining 60% is paid at the delivery. This is a much eased than the harsh ‘Heavy-Tail’ way (the 10-20% paid in advance and the remaining 80~90% to be paid at the delivery) which is common due to the recession in shipbuilding industry.
CMES added that the new VLCCs contracted with DSIC will be fuel efficient 20% more than their same class vessels built in 2009-2011.
The company with the fleet including 13 VLCCs announced in 2012 that it planned to place orders for up to 10 VLCCs in three years and the industry is expecting the company to sign a contract for three VLCCs with two options within this week with a shipbuilder under the roof of the China State Shipbuilding Corporation (CSSC).
Especially, Shanghai Waigaoqiao Shipbuilding (SWS) has unofficially been placed an order for three VLCCs with two options from CMES through its subsidiary, Shanghai Jiangnan Changxing Shipbuilding, for around $85m per a vessel with the payment planned at the end of 2014~2015.
Meanwhile, last December, Dalian Ocean Shipping Company (COSCO DALIAN) of COSCO group signed a contract for two VLCCs with two options for $80m per a vessel from DSIC and the COSCO’s company placed an order for two VLCCs with two options from Guangzhou Shipyard International of CSSC.