Aerial photo of an oil tanker at anchor. Stock Photo: Nickeo23/Shutterstock
The National Shipping Company of Saudi Arabia (Bahri) has announced a significant step in its fleet modernization strategy with the acquisition of nine Very Large Crude Carriers (VLCCs) from Capital Maritime and Trading Corporation.
The purchase agreement, valued at $1 billion was finalized on August 19, 2024.
The strategic acquisition is set to bolster Bahri’s status as a leading global player in the VLCC market and aligns with the company’s goals to phase out older vessels, enhance fleet competitiveness, and ultimately increase revenues and profitability. The new additions to the fleet are modern eco-scrubber ships, known for their cost efficiency and reduced operating expenses.
Bahri’s Oil Transport business unit currently operates 40 VLCCs. The majority of the newly acquired VLCCs, with an average age of 5.9 years, are constructed in South Korea and feature high energy efficiency and low emission technologies, reducing environmental impact. Each vessel boasts an average deadweight tonnage (DWT) of around 311,500.
The transaction involves the delivery of the VLCCs in multiple batches, with all vessels expected to be received by Bahri by the end of the first quarter of 2025. Payment terms include an initial 10% of the total transaction amount paid upon signing, with the remaining 90% due upon delivery. The acquisition will be financed through a combination of banking facilities and internally generated funds.
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