South Korea-based shipyard STX Offshore & Shipbuilding (STX O&S) said May 18 it has won an order for up to eight LR1 tankers for a long-term charter deal with Royal Dutch Shell.

STX O&S did not reveal the shipowner's identity, but market sources said that Sinokor Merchant Marine is behind the order.

The deal is composed of four firm orders of 74,000dwt tankers, with options for another four vessels.

If all options are exercised, the total contract value would be US$375m (US$46.875m for each ship). The ships are scheduled to be delivered from end of 2016.

Since the first half of 2014, STX has clinched 21 of the 36 LR1 tankers that have been ordered worldwide, garnering a 60% market share.

The builder said, "Despite keen competition for such vessels among Chinese and South Korean shipbuilders, STX's success comes from the superior fuel efficiency of its ships. Research into the building of MR and LR tankers is paying off with the recovery in demand for such ships."