Bahri Signs Long Term Crude Oil Shipping Deal with South Korea

KHOBAR, Saudi Arabia, April 8 (Reuters) – National Shipping Company of Saudi Arabia (Bahri) has agreed with South Korea’s S-Oil Corp to ship crude oil cargoes from the third quarter of this yr.

Under the 10-year contract, Bahri will ship the oil on very massive crude carriers (VLCCs) from the Arabian Gulf and Red Sea to the port of Onsan in South Korea, Bahri mentioned on Wednesday.

Bahri expects to ebook revenues of a minimum of 250 million riyals ($67 million) yearly from the deal.

It grew to become the only supplier of VLCC crude oil transport providers to Saudi Aramco after it bought the marine unit of the oil big in a deal first introduced in 2012 however which was accomplished final yr.

Last July, Saudi Aramco’s unit Aramco Overseas Co mentioned its possession in S-Oil would rise to 63.4 % after it agreed to purchase in precept Hanjin Group’s 28.4 % stake within the South Korean refiner. (Reporting by Reem Shamseddine; Editing by Andrew Torchia)