South Korean shipping giant Hyundai Merchant Marine has decided to abandon its options for five additional tankers, the company confirmed.

The company’s very large crude carrier (VLCC) options were a part of an earlier shipbuilding agreement with compatriot shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME).

Namely, in April 2017, HMM and DSME signed a letter of intent for the construction of five 300,000 dwt VLCCs, with an option for five more ships. The parties were also to consider LNG carrier engine and eco-friendly technology for the ships.

At the time, HMM said it would use funds from the financing package worth KRW 2.6 trillion (USD 2.28 billion), a part of South Korea’s efforts to help the country’s shipping industry, to finance the newbuildings.