Business | Shipping
Saudi shipping company plans to acquire new VLCCs
National Shipping Company of Saudi Arabia is considering acquiring new very large crude carriers and chemical tankers this year under a five-year expansion plan.
- By Shakir Husain, Staff Reporter
- Published: 00:00 January 24, 2006
Dubai: National Shipping Company of Saudi Arabia (NSCSA) is considering acquiring new very large crude carriers (VLCCs) and chemical tankers this year under a five-year expansion plan.
"We will consider acquisitions of additional modern double-hull VLCC tankers. These can both new vessels and second-hand carriers not more than five years old. The acquisitions will double the number of VLCCs in our fleet by 2010," the company's president Saleh Al Shamekh said.
Acquisition of nine VLCCs and eight chemical tankers will follow in phases depending on demand for crude oil transport and market conditions, he told Gulf News.
"There is high growth in crude transportation business as demand for oil has risen in China, India and the US," Al Shamekh added.
Seventy per cent of the company's profit comes from the oil and gas business. The company's top five clients are oil majors Shell, BP, Chevron, Exxon and Vela, Saudi Aramco's shipping subsidiary.
It currently has nine double-hulled crude carriers, nine chemical tankers and four multi-purpose Ro-Ro ships in service. It is expected to take delivery of eight new chemical tankers of 46,200 deadweight tonnes (dwt) this year and next year.
In late 2004 the company signed an agreement with South Korea's Hyundai Samho Heavy Industries for two VLCCs of 318,000 dwt each, which are scheduled to be delivered in the third quarter of 2007, Al Shamekh said.
The company, which is 28 per cent owned by the Saudi government, is working on the five-year strategic plan in December 2005 to carry out expansion across all its business activities, mainly the transportation of crude oil and petrochemicals.
Al Shamekh said NSCSA is not considering venturing into the LNG transportation business under the expansion plan.
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