Saudi shipping company inks $1b tanker deal
The majority of these VLCCs were constructed in South Korea
Dubai: The National Shipping Company of Saudi Arabia Bahri finalised a $1 billion (Dh3.67 billion) agreement to purchase nine very large crude carriers (VLCCs) from Greek firm Capital Maritime and Trading Corporation.
These VLCCs, essential for transporting vast quantities of unrefined crude oil from extraction sites to refineries globally, will enhance Bahri’s fleet for delivering crude cargoes to its clients.
Under the terms of the deal, Bahri will pay 10 per cent upon signing the purchase agreement, with the remaining 90 per cent due upon delivery of the vessels. The company expects to receive the ships in several batches before the end of the first quarter of 2025, as outlined in a Tadawul filing.
The majority of these VLCCs were constructed in South Korea and are approximately six years old on average. Financing for the acquisition will come from a combination of bank loans and internally generated funds, according to a report by Bahri.
Bahri’s oil transport division currently operates a fleet of 40 VLCCs. The new vessels, each with an average deadweight tonnage (DWT) of about 311,500, will replace some of the older ships in the fleet. The Public Investment Fund of Saudi Arabia holds a 22.5 per cent stake in Bahri, while Saudi Aramco owns 20 per cent.