Aramco, Bahri complete $1.3b shipping merger

JEDDAH – The National Shipping Company of Saudi Arabia or NSCSA (Bahri) and Saudi Aramco’s subsidiary, Vela International Marine Ltd., have completed their $1.3 billion merger, Saleh N. Jasser, Bahri’s CEO, said Tuesday.

“The total amount involved is $1.3 billion. The cash payment involved is $832.7 million, including the issuance of 7.875 million new shares at SR22.25 per share,” Jasser said at  a press conference in Riyadh.
Aramco will own 20 percent of NSCSA shares, he added.

Under the merger, Saudi Aramco is transferring its entire Vela fleet — 14 double-hull very large crude carriers (VLCCs), one VLCC used as a floating storage; five refined products carriers; all Vela’s ship-based cadres and some of its land-based personnel; and a part of its operations systems — to Bahri, which would then have a 77 vessel fleet, Aramco said.

The agreements with Aramco also include a long-term shipping contract, exclusive VLCC crude oil shipping provider to Aramco sold on delivered basis and the contract includes a TCE floor and threshold, Jasser said. NSCSA is the biggest shipping fleet in the Middle East and the third largest VLCC owner in the world, behind MOL and Fredriksen.

Related Articles

Back to top button