10. VESSELS UNDER CONSTRUCTION

Vessels under construction represents the cost of acquiring contracts to build vessels, installments paid to shipyards, certain other payments made to third parties and interest costs incurred during the construction of vessels (until the vessel is substantially complete and ready for its intended use).

Vessels under construction consist of the following (dollars in thousands):



	December 31, 2016		December 31, 2015
2014 Acquired VLCC Newbuildings:
Vessels / SPV Stock Purchase	$	162,683	$	162,683
Installment and supervision payments		579,818		287,259
Accrued milestones and supervision payments		—		18,895
Others		5,214		2,687
2015 Acquired VLCC Newbuildings:
Vessels		435,417		435,417
Acquisition-related costs		10,295		10,295
Installment and supervision payments		840,833		183,738
Accrued milestones and supervision payments		5,368		87,150
Others		14,138		3,110
Fair value of 2015 Warrant Agreement assumed		3,381		3,381
Fair value of 2015 Stock Options assumed		39		39
Capitalized interest		71,731		44,130
Vessel deliveries		(1,951,784)		(327,767)
Total	$	177,133	$	911,017

2014 Acquired VLCC Newbuildings

In March 2014, the Company acquired seven newbuilding contracts for VLCC tankers from Scorpio Tankers Inc. (the “2014 Acquired VLCC Newbuildings”) in a stock purchase transaction for the purchase of the outstanding common stock of the Scorpio Shipbuilding for an aggregate price of approximately $162.7 million.

During the year ended December 31, 2015 and 2016, and in accordance with the respective newbuilding contract, the Company took delivery of two and five of the 2014 Acquired VLCC Newbuildings, respectively. As of December 31, 2016, all of the 2014 Acquired VLCC Newbuildings were delivered to the Company. See Note 8, DELIVERY AND DISPOSAL OF VESSELS, for deliveries during the year.

2015 Acquired VLCC Newbuildings

The Company acquired 14 newbuilding contracts for VLCC tankers from Navig8 Crude in connection with the 2015 merger (the “2015 Acquired VLCC Newbuildings”) with deliveries commenced in the fourth quarter of 2015. See Note 6, 2015 MERGER, for more details.

During the year ended December 31, 2015 and 2016, and in accordance with their newbuilding contracts, one and ten of the 2015 Acquired VLCC Newbuildings were delivered to the Company, respectively. See Note 8, DELIVERY AND DISPOSAL OF VESSELS, for deliveries during the year ended December 31, 2016. As of December 31, 2016, the three remaining 2015 Acquired VLCC Newbuildings are scheduled to be delivered during 2017 with estimated commitments of $143.2 million and available borrowing of approximately $190.0 million. See Note 22, Subsequent events, for deliveries after December 31, 2016 and Note 14, LONG TERM DEBT.