CSIC-affiliated Dalian Shipbuilding Industry (DSIC) has reportedly signed a letter of intent (LOI) with compatriot containership operator Tianjin Marine for two 320,000 dwt Very Large Crude Carriers (VLCCs).

TradeWinds reported that DSIC entered into an LOI with Tianjin for two VLCC newbuildings which are slated for delivery in late 2016 and early 2017. Industry sources said that the official contract will be signed by late October this year.

However the shipowner is somewhat delaying the newbuilding project due to recently increased newbuilding price that the owner will have to pay 10% more while DSIC is said to also request more than $100m apiece for a newbuilding.

The LOI looks to be in line with the Chinese government move to encourage compatriot related companies to actively take part in oil import shipping business.