Algeria’s Hyproc Shipping is diversifying into the product tanker sector.

The shipping arm of state-owned energy company Sonatrach has commissioned South Korea's Hyundai Mipo Dockyard (HMD) to construct a 40,000-dwt MR tanker, according to shipbuilding sources. It is not disclosed whether the deal includes any option.

Shipbuilding players said Hyproc signed up for the newbuilding early this month. No price has been disclosed, but the company is scheduled to take delivery of it in late 2019.