Viking Cruises has signed a letter of intent with Vard to build two ships described by the shipyard as "advanced cruise vessels designed to be among the most environmentally friendly ships."

Vard was vague about the type of ships it will build for Viking, but the shipyard is constructing expedition ships for Ponant and Hapag-Lloyd Cruises.

Vard will build the hulls in Romania and finish the ships in Norway, a method Vard is using for the Ponant and Hapag-Lloyd vessels.

Viking's letter of intent calls for delivery of two ships in 2021 and 2022, plus an option for two more. The size of the vessels wasn't disclosed, but the value of the expected contract is about $570 million. A final contract is expected by mid-2018.

In announcing the agreement, Vard CEO Roy Reite said Viking "is well known for its expansion in river cruises and ocean cruises, and they are now looking to Norway for the design and construction of its new cruise fleet."

Vard's parent company is Fincantieri, which has built Viking's oceangoing ships.

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