Saudi Arabia's national shipping company, Bahri, has inked a significant deal to purchase nine Very Large Crude Carriers (VLCCs) from Capital Maritime and Trading Corporation. Valued at approximately $999 million (3.75 billion Saudi riyals), this acquisition aligns with Bahri's ongoing fleet modernization strategy. The new vessels are expected to replace aging tankers, enhancing the company's operational efficiency and capacity.
The transaction, announced on August 20, will see the delivery of all nine VLCCs by the end of Q1 2025. Bahri has structured the payment with an initial 10% down payment, with the remaining 90% due upon the vessels' delivery. The funding for this purchase will come from a mix of banking facilities and internally generated capital, ensuring financial flexibility for the company.
Bahri, which operates one of the largest fleets of VLCCs globally, currently manages 39 vessels, according to the company's website, each with a capacity of 2.2 million barrels. This fleet's substantial scale gives Bahri control over approximately 13.4 million deadweight tons (DWT) of oil transport capacity. The new additions will further bolster this capacity, maintaining Bahri's leading position in the crude oil transportation sector.
Its VLCCs are equipped with advanced cargo flexibility, enabling them to carry up to three different grades of crude or fuel oil simultaneously. This versatility is crucial in a market where logistical efficiency and adaptability are paramount.
This deal is strategically significant for Saudi Arabia, the world's largest oil exporter, as it continues to secure and expand its logistical capabilities.
Bahri's move to modernize its fleet is designed to maintain its competitive edge in the oil shipping industry. Saudi Arabia continues to be one of the world's largest oil producers and exporters.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group. More