South Korean shipping company Pan Ocean has entered into a long-term crude oil transportation agreement with SK Energy and SK Incheon Petrochem valued at approximately $1.62 billion. The contract will provide long-term employment for four new very large crude carriers (VLCCs) that the company is building as part of the expansion of its tanker business.
According to Pan Ocean, the agreement will run for 20 years, from September 2029 to September 2049. Under the contract, four VLCCs with a deadweight of 300,000 tonnes each will transport crude oil to South Korea, including cargoes sourced from the Middle East. The company noted that the start and end dates of the agreement may be adjusted depending on the vessels’ delivery schedules.
The contract is believed to cover the four VLCCs that Pan Ocean has ordered from Hanwha Ocean. Earlier, the company announced an investment of KRW 783.4 billion (approximately $525 million) in the construction of these vessels. Each tanker is estimated to cost around $131 million.
The long-term agreement represents an important step in strengthening Pan Ocean’s position in the crude oil transportation market. Earlier in 2026, the company also agreed to acquire 10 VLCCs from SK Shipping in a deal worth approximately $700 million, significantly expanding its presence in the sector.
Pan Ocean continues to place newbuilding orders at Asian shipyards. In 2025, the company ordered two VLCCs from HD Hyundai Heavy Industries for delivery in 2027 and also reserved construction slots for another tanker at China’s Qingdao Beihai Shipbuilding. These moves further demonstrate the company’s long-term strategy to expand its footprint in the global crude oil transportation market.
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