KUWAIT, (Reuters) – State-owned Kuwait Oil Tanker Co (KOTC) has signed a letter of intent with South Korea’s Daewoo Engineering & Construction to build four very large crude carriers for $700 million, KOTC’s chairman said on Monday.

“The final contract will be signed on August 21,” Nabil Bouresli told Reuters, adding that the tankers would be delivered at the end of 2011 as part of a fleet renewal plan.

He added that the firm would also announce in mid-September the winner of a tender to build two tankers for petroleum products.