Chinese COSCO (Zhoushan) Shipyard, a subsidiary of COSCO Shipyard Group, has entered into a contract with an undisclosed European buyer to construct two 113,000dwt crude oil tankers. In addition, the European buyer has been given the option to make a decision before November 2016 to build two more.

COSCO Zhoushan and the European buyer have agreed to keep the contract prices confidential, the company said.

COSCO said that the transactions are not expected to have a material impact on the net tangible assets and earnings per share of the company for the year ending Dec. 31, 2016.