The $1.11bn VLCC joint venture was announced in August, with CMES taking 51% of the joint venture and Sinotrans & CSC owning the remaining 49%.
Li Jianhong, director and president of CMES, said at the signing ceremony that the latest deal will help to secure China’s energy needs and raise the global competitiveness of China’s seaborne oil transportation.
As part of the deal, CMES will provide $565.94m worth of assets including nine operational VLCCs and 10 VLCC newbuild contracts, an unspecified equity stake in its subsidiary Haihong Shipping, and some cash. Sinotrans & CSC will put in $543.78m in cash.
The new joint venture is expected to purchase secondhand crude tankers or order newbuildings.
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