Saudi Aramco Looking into VLCCs at Hyundai

Board members of the Saudi Arabian Oil Company, parent company of National Shipping Company of Saudi Arabia (Bahri), have visited South Korea’s top shipbuilder Hyundai Heavy Industries (HHI).

The visit is reported to form part of negotiations between the two parties on ordering up to 10 tankers, Reuters reported citing unnamed industry sources.

Namely, Bahri has tendered a contract for construction of up to ten very large crude carriers (VLCCs), five firm plus five optional units. The delivery of the tankers is due in 2017, Reuters informed.

The price tag of the mega order would reach up to USD 1 billion, USD 96.5 million per vessel.

Saudi Aramco’s Board, membered by top Saudi Arabian government officials, are set to hold their offsite annual board meeting in Seoul, AFP writes.

The announcement comes just weeks after Bahri signed a Contract of Affreightment with South Korean S-Oil Corporation on April 8th, 2015 for a period of ten years.

Under the deal, Bahri has been contracted to transport crude oil cargoes on VLCCs from the Arabian Gulf and Red Sea to Onsan, Korea.

Bahri said that the contract forges a new and increased level of relationship between the two companies, who have had substantial spot voyage charter business together during the past 10 years.

Saudi Aramco has bought majority stake in S-Oil Corporation in January.

World Maritime News Staff