Odfjell has signed a term sheet with US-based Chemical Transportation Group (CTG) under which the Norwegian shipping group will acquire the last five of CTG’s total newbuilding order of 10 vessels.

CTG will continue to own five of the vessels, which will operate in a pool commercially managed by Odfjell Tankers. The ships that CTG owns will enter the pool as soon as existing pool agreements and charters expire in the coming six to 12 months. The pool will ultimately comprise 15 tankers in total, including Odfjell’s current fleet of five vessels and the ones to be acquired.

The vessels, which each have a deadweight tonnage (dwt) of 25,000 and boast 24 stainless steel tanks, are being built by Chinese shipbuilder AVIC Dingheng. Odfjell will pay $40 million per ship on delivery, which is scheduled to take place up to May 2018.

Kristian Mørch, Odfjell’s CEO, said the acquisition is in line with its Compass strategy and will complete most of its current tonnage ambitions. Launched in February, the Odfjell Compass program has a focus on growth, with fleet renewal one of its key initiatives.

The transaction is subject to final negotiations and execution of definitive documentation as well as the usual closing conditions.

In May, the Bergen-based group purchased the Argent Eyebright, a large stainless steel tanker that has been on short-term time charter to Odfjell Tankers since January 2017. Odfjell  paid $25.5 million for the ship, which has 16 tanks and was built in November 2009 by Kitanihon Shipbuilding in Japan.

The acquisition was scheduled to complete at the end of June, when the vessels will be renamed and entered on the Norwegian International Ship Register.