The National Shipping Company of Saudi Arabia (Bahri) has signed a Memorandum of Agreement (MoA) to purchase a very large crude carrier (VLCC), the Hanjin Ras Tanura, for USD 75 million.
The ship, built in 2011 at Hyundai Heavy Industries in South Korea, will be delivered to Bahri in March 2016.
The company said that the financial implication of the purchased vessel is expected during the 2nd quarter of 2016.
In October 2015, Bahri was reported to be negotiating raising of around 2.8 billion riyals (USD 747 million) with local banks via a long-term loan to be used towards vessel financing.
The funding was allegedly intended for financing purchase of VLCCs from South Korean shipbuilder Hyundai Heavy Industries.
Bahri was very active in fleet build-up over the past few months, the latest move being buying of five second-hand Medium Range tankers for a total purchase price of USD 166.5 million.
The vessels were built in 2014 at Hyundai Mipo Dockyard in South Korea for Scorpio Tankers Inc.
The five ships will be delivered to NCC between 1st February and 30th June 2016.
At the end of 2015, Bahri’s fleet consisted of seventy five vessels; from which 33 were VLCCs and 26 are chemical tankers.