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.