The National Shipping Company of Saudi Arabia (Bahri) has signed a Contract of Affreightment (COA) with South Korean S-Oil Corporation on Wednesday, 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.
The commercial operation is expected to commence during the third quarter of 2015 and the financial impact is expected to appear in the third quarter of 2015.
According to Bahri, the deal is expected to bring annual revenue of around 250 million Saudi Riyals (around USD 66.6 million).
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.
The company became the sole provider of VLCC crude oil shipping services to the world’s largest producer and exporter of oil, Saudi Arabian Oil Company (Aramco) following the purchase of Vela’s fleet.
The deal included shifting the entire Vela whole fleet, crew and employees and part of its business systems to be integrated within Bahri’s structure.