Bahri snaps up 9 VLCCs for $1bln as part of ‘ambitious’ fleet modernization plan

The National Shipping Company of Saudi Arabia (Bahri) has finalized a purchase agreement with shipping firm Capital Maritime and Trading Corporation to acquire nine very large crude carriers (VLCCs).

As part of the agreement, which was signed on August 19, 2024, the company decided to acquire the nine VLCCs for an approximate amount of SAR 3.75 billion ($1 billion).

The majority of the nine VLCCs are built in South Korea, with an average age of 5.9 years and an average deadweight tonnage (DWT) of around 311,500. They are scrubber-fitted VLCCs and equipped with high energy efficiency and low emission features to reduce environmental impact. The

Capital Maritime agreed to deliver the eco-scrubber VLCCs to Bahri in multiple batches before the end of the first quarter of 2025.

As for the payment schedule, it was agreed that Bahri will pay 10% of the total transaction amount upon signing the purchase agreement, while the remaining 90% is to be paid upon delivery of the vessels.

The transaction is expected to advance Bahri’s fleet modernization plans. The main purpose of this acquisition is to enable the Saudi giant to streamline the process of phasing out older vessels in the fleet going forward.

Moreover, the transaction is poised to improve Bahri’s overall fleet competitiveness to enhance the company’s revenues and profitability.

The VLCCs will be used by Bahri Oil Transport business unit to deliver crude oil cargoes for its clients. Its oil transport business unit currently operates a fleet of 40 VLCCs.

Bahri recently signed a Letter of Intent (LoI) with Saudi Arabian mining giant Ma’aden to establish business integration opportunities in the maritime industry and develop resilient supply chains.

In January this year, Saudi Arabia’s national shipping carrier signed a five-year agreement with Swiss methanol producer and tanker owner Proman to time-charter two methanol-powered ships, Stena Provident and Stena Progressive. The vessels were built at Guangzhou Shipyard International (GSI) in China.

To reduce its emissions, Bahri Chemical also took delivery of ten eco newbuild AMWAJ-type vessels from Dammam-headquartered HMD General Contracting (HMD).