Odfjell has reached agreement with the major Russian shipyard "Sevmash" at Severodvinsk near Arkangelsk to build a series of eight to twelve advanced product/chemical carriers, for delivery 2007 onwards. These will be IMO type II fully coated vessels of about 45,000 dwt. and will replace some of our older chemical carriers.

Odfjell expects an enhanced commercial demand for such ships due to recently enacted stricter IMO rules and regulations for carrying vegetable oils and certain other bulk liquid products by double-hulled chemical tankers.

The first eight of the "Sevmash" vessels will cost on average about USD 41 million each. The optional four vessels will be priced according to a mutually agreed market-related formula.