Bahri Extends Key Oil Transport Deal with S-Oil
Saudi Arabia’s leading shipping company, Bahri, has solidified its long-standing relationship with South Korean refiner S-Oil by renewing a crucial contract for another decade. This renewed contract of affreightment (COA) will enable Bahri to transport a minimum of 70 million barrels of crude oil annually from the Arabian Gulf and Red Sea to Onsan, South Korea. The agreement is seen as a significant milestone for Bahri, ensuring stable operations for a portion of its fleet amid fluctuating tanker markets.
Strategic Partnership and Economic Stability
The 10-year agreement marks a continuation of a partnership that has thrived for over 20 years. Bahri’s CEO, Ahmed Ali Al-Subaey, emphasized that this renewal not only strengthens the strategic ties between Bahri and S-Oil but also highlights their commitment to reliability and long-term cooperation in energy logistics. The deal is expected to provide Bahri with predictable revenue streams, which are essential for maintaining operational stability in the often-volatile shipping industry.
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With a fleet of 50 Very Large Crude Carriers (VLCCs), Bahri is poised to enhance its fleet utilization through this contract. The partnership is mutually beneficial, as S-Oil’s CEO, Anwar Al-Hejazi, noted that the extended agreement ensures continued access to Bahri’s modern fleet. This access is crucial for S-Oil as it seeks to bolster its supply chain resilience and support its growth plans over the next decade. The renewal of this contract is a testament to the enduring trust and collaboration between the two companies, reinforcing their positions in the global energy market.
