Saudi Arabia’s Bahri secures $1 billion deal for nine advanced oil tankers

Saudi Arabia’s national shipping company, Bahri, has completed a significant deal to acquire 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, increasing the company’s operational efficiency and capacity.

The transaction, announced on August 20, will see all nine VLCCs delivered by the end of the first quarter of 2025. Bahri has structured the payment with an initial 10% down payment, with the remaining 90% due upon delivery of the vessels. Financing for this acquisition will come from a mix of bank 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. The substantial size of this fleet gives Bahri control of approximately 13.4 million deadweight tonnes (DWT) of oil-carrying capacity. The new additions will further strengthen this capacity, maintaining Bahri’s leadership position in the crude oil transportation sector.

Its VLCCs are equipped with advanced cargo flexibility, allowing them to carry up to three different grades of crude oil 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 logistics 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 largest oil producers and exporters in the world.

By Julianne Geiger for Oilprice.com

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