By GMM Technologies | 2024-08-26 | Maritime Industry News |

Saudi shipping giant Bahri inked an agreement to acquire nine very large crude carriers (VLCCs) from global shipping outfit Capital Maritime and Trading Corporation for SAR 3.75 bn (c.USD 1 bn), according to a disclosure on the Saudi Exchange (Tadawul). The VLCCs will be used by Bahri’s oil transport business to transport crude oil cargoes to its customers. The national shipping company is partly owned by the Public Investment Fund (Saudi’s sovereign wealth fund) and oil giant Aramco.

Capital Maritime and Trading Corporation will deliver the VLCCs to Bahri in multiple batches before the end of 1Q 2025. The Saudi firm will pay 10% of the total amount upon signing the purchase agreement, while the remaining 90% will be paid upon delivery of the vessels. The transaction will be financed by a combination of banking facilities and internally generated funds by Bahri, according to the disclosure.

The majority of the nine oil tankers are built in South Korea, Bahri said. The vessels are scrubber-fitted and equipped with high energy efficiency and low emission features to decrease environmental impacts. The average deadweight tonnage of each VLCC is around 311.5k.

Bahri says that the agreement will contribute to its fleet modernization plans, and will enable the company to phase out its older vessels. Bahri currently operates a fleet of 40 VLCCs with a 2.2 mn barrels capacity, according to the company’s website.

Bahri said last month following its 2Q 2024 earnings that it plans to generate further growth through strategic fleet expansion and upgrades. Bahri and Saudi investment holding firm Aljan & Bros renewed earlier this year an MoU to discuss establishing a joint venture (JV) in vessel building. Bahri is also partnering with the Saudi Port Authority to establish a 95k sqm logistics center at Jeddah Islamic Port, which is expected to offer services including container maintenance, repair, cleaning, bonded storage, and haulage.