Diamond S Shipping (DSS), established by U.S. private equity fund, First Reserve Fund in 2007 with $300m of investment, has currently made a decision to purchase 40 vessels for the purpose of increasing the number of ships.
Besides recent takeover of 30 MR tankers from CIDO Shipping of Hong Kong, DSS placed newbuilding orders of 10 tankers to South Korea's Hyundai Heavy Industries and Samsung Heavy Industries in June 2010.
Newbuildings include eight suezmax tankers and two LR2 tankers, delivery in 2012-2013. DSS plans to pay by institutional investors' financing and Suezmax is known to cost about $68m per vessel.
About $1.2bn of payment to CIDO will be paid by $600m of institutional investment and $600m of shipping finance.