China VLCC, a joint venture between China Merchants Energy Shipping (CMES) and Sinotrans & CSC Group, has sealed a time-charter deal with oil major Shell for one VLCC.

The time-charter deal is over a period of three years, and the contract is valued at RMB262m ($39.7m). The contract value is expected to account for 10.06% of CMES revenue for 2014, the Shanghai-listed Chinese firm said in a brief statement.

CMES added that the VLCC has commenced operations for Shell as of the date of the announcement on 30 January.