No. 294 Aug. - Sept. 2002

World’s first new-build LPG FPSO vessel to be sited off Angola

LPG product transshiping (images of FPSO, right, and LPG carrier, left)
Mitsui & Co., Ltd. and Ishikawajima-Harima Heavy
Industries Co., Ltd. (IHI) have signed the formal contract
for the construction of a LPG FPSO (Floating Production,Storage and Offloading) vessel for Single Buoy Mooring
Inc. of Monaco.
The FPSO vessel will be used for the Sanha Condensate Project at the Cabinda Block-0 located off Angola. The
project is operated by a major oil group consisting ofSonangol (national oil company of Angola), ChevronTexaco,TotalFinaElf and Agip.
The LPG FPSO vessel will be completed at IHI Kure
Shipyard in mid-2004 for the first shipping of productscheduled in the beginning of 2005. A joint venture company formed by Single Buoy Mooring Inc. and Sonangol
will operate the vessel.
This will be the world’s first newbuilding of a FPSO
vessel for liquefied gas and has a daily production capacity of 6,000m3 and storage capacity of 135,000m3. Thesecapacities are also ranked among the world’s largest.

The vessel will continuously be operated for 20 years
without dry docking. It will include LPG storage tanks
and LPG production plants such as gas separators, gas
refrigerators, and boil-off gas reliquefaction units on theupper deck.
This eliminates various costs required for laying pipeson the seabed, civil construction on land, and makes theconstruction period shorter and secures the clean environment.
Previously, associated gas produced at the offshore oil
production platforms has been flared in the air, or sent to
the LPG production plants on land. The use of the LPG
FPSO system will make petroleum gas more available ata low cost as a fuel in the market.
The IHI SPB tank system (Self-supporting, Prismaticshape, IMO Type-B) will be used for the storage tanks ofthe new LPG FPSO vessel, which is durable against thelow temperature of LPG, minus 50oC. Other features are:(Continued on page 2)

For further information please contact:

JAPAN SHIP EXPORTERS' ASSOCIATION
15-16, Toranomon 1-chome, Minato-ku, Tokyo 105-0001 Tel: (03) 3508-9661 Fax: (03) 3508-2058 E-Mail: postmaster@jsea.or.jp

Topics

No. 294 Aug. - Sept. Page 2

JBIC Eyes Revitalization of Ship Export Finance:
OECD Sector Understanding on Export Credits for Ships Revised
The Export-Import Bank of Japan(JEXIM), predecessor of the Japan
Bank for International Cooperation(JBIC), supported in its capacity as
an export credit agency the development of ship export trade and shipbuilding industry, which played a vital role in the postwar economic development of Japan. At the peak of its
activities during the 1970s, JEXIM
yearly provided almost 300 loans, totaling nearly ¥300 billion, for the purpose. However, as the OECD sector
understanding on export credits forships agreed upon in 1981 set theminimum applicable interest rate at
8% as far as official export credits forships were concerned, irrespective of
the currency used, ship export financeby JEXIM after this understanding
became less competitive in comparison with the market interest level inJapan, resulting in the loss of attrac-tiveness for Japan’s official ship export finance.
However, the Working Party on
Shipbuilding of the OECD Council
and the parties to the export credit
guideline recently revised the understanding regarding the ship export
credit sector, and the revised understanding formally took effect on April
15 this year. The conditions of thenewly revised understanding, as
stated below, better reflect the realities of the market both in interest rateand in repayment period.
JBIC extended its first buyer’s
credit for a ship transaction last November, covering two large cruise
ships built by Mitsubishi Heavy Industries, Ltd. This finance was anadvance application of the new conditions ahead of the formal effectuationof the new guideline, following a notification to the OECD Secretariat. TheNew conditions

Old conditionsMinimuminterest rate

CIRR (Commercial interest
reference rate: fixed rate
determined monthly subject
to the OECD Guideline;
currently 5.3% for the US
dollar from August 15 toSeptember 14, 2002)

8%Repayment
periodNot longer than 12 years
after delivery

Not longer than 8.5
years after delivery

Down payment

At least 20% of thecontract priceAt least 20% of thecontract price(Continued from page 1)
1. The IHI SPB tank system has no problems caused bywave-excited sloshing, permitting LNG/LPG handlingat any liquid storage level.
2. The upper deck is flat, allowing free arrangement of
the necessary installations on the upper deck, and thewind resistance is small.
3. Tough tank construction with superior fatigue strengthis achieved by use of plates and webs.
4. Maintenance and inspection are easy since sufficientspace at normal temperature is provided between theJBIC Tokyo Head Office
Japanese shipbuilding industry, having gone through a series of restructuring measures including mergers
and assets cutbacks, still holds animportant position in the world market based on its highly sophisticatedtechnology developed in the so-called“matured industry.” The industry isexpected to continue to play a majorrole in technological innovation andsophistication in the world shipbuilding market. Following the recent formal effectuation of the OECD sector
understanding on export credits forships, JBIC wishes to take active initiatives to revitalize ship export finance in view of the expected increasein ship export deals.
Information available from JBIC URL
http://www.jbic.go.jp/english/index.php
Contact:
FAX: +81-3-5218-3955 (Tokyo Office)vessel structure and LPG storage tanks.
Mitsui and IHI delivered the world’s first new purposebuilt LPG FSO vessel, Escravos LPG FSO, for the Escravos
Gas Project (Phase-I) operated by ChevronTexaco in 1997.
It has been operated without any down-time for more than
5 years. The Escravos LPG FSO was also built using theIHI-SPB liquid gas containment system. This proven technology will again be applied to the new LPG FPSO vessel
for the Sanha LPG FPSO.
These achievements will encourage Mitsui & Co. andIHI to expand their business activities for offshore oil &gas development projects.

TopicsNo. 294 Aug. - Sept. Page 3

KHI new design enhances propulsion of medium-speed ships
Kawasaki has drawn upon its design technology and shipbuilding expertise to develop the optimum bow
shape for medium-speed marine vessels such as LPG carriers. The new
design significantly reduces the bow
wave resistance drag and enhances
the propulsive performance.
Conventional LPG carriers havetanks extending all the way to theforepeak of the hull to increase carrying capacity, while observing port
regulations restricting the length ofcarriers.
Therefore, the bows are wider thanoil tankers and bulk carriers. However, this increased width, in combination with greater speed, createshigh waves at the bow, which act
against the ship’s forward movement.
LPG carriers are required to havebox-shape tanks arranged to the fore
end of the hull because of necessity
for efficient arrangement of LPG
tanks as well as develop a faster ship
speed than oil tankers and bulk carriers. LPG carriers are limited to thelength due to facility limitation at theloading/unloading ports.

Under the restrictions, conventional LPG
carriers havebeen designed tobe relatively fullin the bow part.
This bow shape
generates highwaves aroundthe bow during
navigation, causing large resistance.
Kawasaki has solved these problems by designing a bow that dramatically reduces the bow wave-generated
resistance inherent to LPG carriers
and improves the propulsive performance. The new design, called theSEA-ARROW (Sharp Entrance Angle
bow as an Arrow), retains the effect of
the bulbous bow (bulb) while eliminating the protrusion from the bow.
The SEA-ARROW effectively
halves the bow wave resistance drag,allowing the vessel to maintain thesame speed as the conventional LPG
carrier at 6 to 10% less horsepower,
or a 0.3 to 0.5 knot speed increase
when operating at the same horse-

The new bow (above) has no bulb as
seen in the previous bow (below)

power. This development has led to a
drastic reduction in fuel consumption
and a shortening of shipping schedules.
Kawasaki has been contracted tobuild two SEA-ARROW vessels, with
one vessel already under construction,
and also plans to integrate the design
into larger LPG carriers.

IHI completes 6,400TEU overPanamax
container carrier for MOL
Ishikawajima-Harima Heavy Industries Co., Ltd. (IHI) has completed
construction of the overPanamax container carrier, MOL Priority, at theKure Shipyard for Mitsui O.S.K.

Lines, Ltd. of Japan. The carrier has
a container capacity of 6,400TEUs.
The MOL Priority is the third overPanamax container carrier built for
MOL, which will operate the ship. IHI

has constructed 13 overPanamax container carriers including the MOL
Priority since 1994, and will continue
to build 11 large container carriers atthe Kure and Yokohama shipyards ofthe company.
Principal particulars of the MOL
Priority
L (o.a.) x B x D x d: 284.56m x 40.00m
x 24.20m x 14.00m
DWT/GT: 74,453t/74,071t
Main engine: DU-Sulzer 11RTA96C
diesel x 1 unit
Output: 60,390kW
Speed, max. trial: 27.8kt
Container carrying capacity:
6,400TEUs
Complement: 30
Classification: NK
Completion: June 17, 2002

Topics

No. 294 Aug. - Sept. Page 4

MHI-build LNG carrier, Abadi, obtains
LR’s Environmental Protection notation

Abadi, an environment-conscious ship
Lloyd’s Register’s Environmental
Protection (LR’s EP) notation has been
applied to four LNG carriers being
constructed by Mitsubishi Heavy Industries, Ltd. (MHI), the first ship fora joint venture between the Brunei
Government, Mitsubishi Corporationand Shell at the Koyagi Shipyard,
Nagasaki. This is the first time that
the LR’s EP notation has been applied
to ships built in Japan.
The LR’s EP standards are for theenvironment-conscious owner who
wants to manage and demonstrate
Kawasaki Heavy Industries, Ltd.
(KHI) has completed construction ofthe 185,820DWT bulk carrier, CapeFuture (HN: 1512), for Cape Future
Shipping S. A. at the Sakaide Works.
The Cape Future is the first of twovessels jointly designed by Mitsui
Engineering & Shipbuilding Co., Ltd.
and is the first large bulk carrier built
by the Sakaide Works after a 6-year
gap. The carrier is now servicing coaland iron ore transport mainly from
Australia to Japan.
Main features are:- Simple and rationalized material
handling devices-- Measures for reducing NOx and SOx
emission from the main engine- Foam fire extinguisher system provided instead of the CO2 type
- First ship to comply with the newregulations for safety of bulk carriers

environmental performance more effectively. MHI has worked closely with
the Owner and Lloyd’s Register tocomply with the stringent design requirements for the notation that promotes the environmental performancestandards beyond those required by
ISM and MARPOL stipulations, bothin terms of design and ship operation
at sea.
All vessels are required to undergo
a comprehensive process of plan appraisal, survey and audit for the LR’s
EP notation which covers NOx andKHI completes bulkcarrier, Cape Future- Designed with minimum propulsive
resistance, and propelled by a maindiesel engine of the latest type featuring low fuel consumption, andequipped with a high-efficiency propeller
Principal particulars
L (o.a.) x L (b.p.) x B x D x d: 290.00m

SOx exhaust emissions, refrigeration
gases and fire-fighting systems, oil
pollution prevention, garbage management, sewage treatment, hull antifouling systems and ballast watermanagement.
The first of the four LNG carriers
is the Abadi (HN: 2163) completed inJune 2002. The Abadi is a 135,000m3
class with the MOSS spherical fivetank system, which has great safety,
reliability and propulsive performance. Special features based on thelatest technologies are added to theconventional standard for more economical transportation.
The remaining three ships arescheduled for delivery from September 2002 through to March 2004 andwill be delivered to Shell.
Principal particulars of the Abadi
Length (o.a.):290.00m
Length (b.p.):276.00m
Breadth:
46.00mDepth:
25.50mDesign draft:
11.00 mCorresponding DWT:
68,673t
Gross tonnage:
111,461t
Cargo capacity:
136,912m3
Main engine power:
21,320kW
Service speed:
19.0ktx 280.00m x 47.00m x 24.40m x
17.95mDWT/GT: 185,820t/92,993t
Cargo hold capacity: 205,722m3
Main engine: Kawasaki-MAN B&W
6S70MC (Mk VI) diesel x 1 unit
Output (MCR): 16,860kW x 91rpm
Complement: 28
Classification: NK
Completion: July 5, 2002

No. 294 Aug. - Sept. Page 5

Industry News in Brief

New company established for TSL service
Techno-Seaways Inc. was established as a new company between private companies of the shipping andshipbuilding, physical distribution,
trading, and banking businesses onJune 18, 2002.
The new company is a ship-holding and leasing company for theTechno Superliner (TSL: super highspeed ships) based on the R&D
achievements conducted for TSL during the first half of the 1990s.
The first TSL ship will be put inservice between Tokyo and theOgasawara Islands in the spring of2005. Upon commencement of the service, the present 26-hour trip (oneway) will be decreased by 10 hours.
This will greatly contribute to accessibility between Tokyo andOgasawara as well as revitalizationof the islands.
The new company also has targets
to develop high-speed transport networks and technological upgrading ofmarine physical distribution based onthe TSL expertise and will open up
new businesses, while starting thebusiness of owning and leasing of theTSL for the Ogasawara route,

To our readers• Please notify us of any change
in address by letter or telefax
together with the old mailinglabel to ensure you continue
to receive SEA-Japan.
• We welcome your comments
about SEA-Japan. Please address all correspondence tothe Japan Ship Exporters' Association (JSEA), or the Japan Ship Centre in London.
• Address (Tokyo): 15-16, Toranomon 1-chome, Minato-ku,
Tokyo 105-0001 / Tel: (03)3508-9661 Fax: (03) 35082058
E-mail: postmaster@jsea.or.jp• Address (London): GroundFloor, 9 Marshalsea Road,London SE1 1EP, UK / Tel:+44 (0) 20 7403 1666 / Fax:
+44 (0) 20 7403 1777
E-mail: info@jsc.org.uk
URL: http://www.jsc.org.uk

Techno-Seaways Inc. will also
carry out feasibility studies on theother main domestic coasting routes
and Asian routes.
It is expected tosuccessively develop high-speed
marine transportroutes and new business areas for thehigh technology ships including TSL.
Company outline
Registered name: Techno-Seaways
Inc,Capital, paid: 3,280 million yen
Address: 12-10, Hamamatsu-cho 1chome, Minato-ku Tokyo
President: Yasukatsu Yamauchi

Principal particulars
Length, o. a.:
Breadth:Gross Tonnage:
Speed:
Hull material:
Propulsion systems
Passengers
Time required for one way
Navigations/year

Businesses:- Development of marine transportsystems (market research, environmental assessment for businesssetup)- Total support system (comprehensive technical support required for
TSL operation)- Owning and leasing of new type
ships

Outline of Ogasawara TSL
Ogasawara TSL(Planned ship)
Approx. 140m
Approx. 30m
Approx. 14,500t70km/hr
Aluminum alloy
Gas turbines (waterjets)
725
Abt. 16hr
92 round trips

Ogasawara Maru(Existing ship)
131m
17m
6,679t40km/hrSteelDiesel engine (propeller)
1,031
Abt. 26hr
59 round trips

MES achieves world record output of 40 million psin total MAN B&W diesel engine production
The Tamano Works of Mitsui Engineering & Shipbuilding Co., Ltd.
(MES) has achieved the world record
output of 40 million ps in aggregateddiesel engine production of MAN
B&W engines, which was boosted by
the 6S70MC (Mk VI) type delivered
to NKK Corp. This engine was installed on the 176,000DWT Capesize
bulk carrier being built at the NKK
Tsu Works.
MES first entered into a technicallicense agreement with Burmeister &Wain of Denmark in 1926 and built
the first engine in 1928. Since thenthe company has attained the recordsof 10 million ps in 1976, 20 million psin 1987, 30 million ps in 1996, and 40
million ps in July 2002. In recentyears, marine diesel engines have be-come larger ever due to demand forlarger output engines for large container carriers and others.
This contributed to the achievement of engine production of 10 million ps in six years, which is four years
shorter than previous achievements.
On the shop trial basis, MES aims atengine production of 2.6 million ps infiscal 2002, which will exceed 200,000
ps over the output in 2001.

No. 294 Aug. - Sept. Page 6

Shipyard Activities

Pythagoras
Owner: Rising Sun Maritime S. A.
Builder: Hitachi Zosen Corp.
Hull No.: 4993
Ship type: Bulk carrier
L (o.a.) x B x D x d: 217.00m x
32.20m x 19.15m x 13.82m
DWT/GT: 39,709t/75,162t
Main engine: Hitachi Zosen-MAN
B&W 6S60MC (Mk VI) diesel x 1unit
Speed, service: 14.5kt
Classification: LRS
Completion: July 11, 2002

16.50m x 9.77m
DWT/GT: 19,621t/16,770t
Main engine: B&W 6S50MC (Mk 6)
diesel x 1 unit
Speed, trial max.: 19.43kt
Classification: BV
Completion: June 28, 2002
16.90m x 11.90m
DWT/GT: 50,206t/27,993t
Main engine: Mitsui-MAN B&W
6S50MCC diesel x 1 unit
Speed, service: 14.5kt
Classification: NK
Completion: July 2, 2002

Vega Pioneer

Shinsei Maru

European Highlander
Owner: P&O European Ferries (IrishSea) Ltd.
Builder: Mitsubishi Heavy Industries, Ltd.
Hull No.: 1069
Ship type: RoRo Passenger Ferry
L (o.a.) x B x D x d: 162.7m x 23.40mx 7.61m x 5.50m
DWT/GT: 4,428t/21,188GT
Main engine: Wartsila 12V38 x 4units
Speed, service: 22.5kt
Classification: LRS
Completion: May 31, 2002

Owner: Nippon Oil Tanker Corp./
Showa Yusosen Co., Ltd.
Builder: NKK Corp.
Hull No.: 221
Ship type: Tanker
L (o.a.) x L (b.p.) x B x D x d:243.04m x 233.00m x 42.00m x
20.70m x 14.73m
DWT/GT: 56,212t/106,361t

Owner: Vegabulk Shipholding S. A.
Builder: Sanoyas Hishino Meisho
Corp.
Hull No.: 1199
Ship type: Bulk carrier
L (o.a.) x L (b.p.) x B x D x d:
189.90m x 182.00m x 32.26m x
17.10m x 12.041m
DWT/GT: 52,466mt/29,369t
Cargo hold capacity: 66,597m3(grain)
Main engine: MAN B&W 6S50MCC diesel x 1 unit
Speed, service: about 14.5kt
Classification: NK
Completion: Aug. 2, 2002

Main engine: DU-Sulzer 6RTA58T
diesel x 1 unit
Speed, service: 14.5kt
Classification: NK/JG
Completion: May 17, 2002

AkebonoQueen Zenobia
Owner: Constellation Gas S. A.
Builder: Namura Shipbuilding Co.,Ltd.
Hull No.: 228
Ship type: LPG carrier
L (o.a.) x L (b.p.) x B x D x d:
156.03m x 148.00m x 25.00m x

Aventurero Dos
Owner: Aventurero Dos Navigation
Ltd.
Builder: Mitsui Engineering & Shipbuilding Co., Ltd.
Hull No.: 1547
Ship type: Bulk carrier
L (o.a.) x L (b.p.) x B x D x d:
189.80m x 181.00m x 32.26m x

Owner: Solar Shipping and TradingS.A.
Builder: Shin Kurushima Dockyard
Co., Ltd.
Hull No.: 5138
Ship type: Product Tanker
L (o.a.) x B x D x d: 179.88m x
32.20m x 18.70m x 12.022m
DWT/GT: 46,001kt/28,099t
Main engine: 6S50MC-C diesel x 1
unit
Speed, service: 14.6kt
Classification: NK
Completion: Aug. 22, 2002

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