The National Shipping Company of Saudi Arabia (Bahri) has finalised a significant acquisition deal, securing nine very large crude carriers (VLCCs) from Capital Maritime and Trading Corporation for approximately SAR3.75 billion ($1 billion).

The agreement is a key component of Bahri's fleet modernisation strategy, aimed at enhancing the company’s position among the world's top VLCC owners.

Under the terms of the agreement, Bahri will receive the vessels in multiple deliveries, with completion expected by the end of the first quarter of 2025.

The payment schedule includes an initial 10 per cent payment upon signing, with the remaining 90 per cent due upon delivery. The purchase will be financed through a combination of banking facilities and internally generated funds.

The acquisition is set to significantly advance Bahri’s oil transport business unit, which currently operates a fleet of 40 VLCCs.

The new ships will replace older vessels, improving fleet competitiveness and operational efficiency.

The modern, eco-scrubber-equipped VLCCs, built primarily in South Korea with an average age of 5.9 years and a deadweight tonnage (DWT) of approximately 311,500 tonnes, are designed to enhance environmental performance and reduce operating costs.

This strategic purchase is expected to bolster Bahri's revenue and profitability by leveraging the higher earnings potential and cost-efficiency of these advanced vessels.

The modern VLCCs will also aid in streamlining the process of phasing out less efficient ships in Bahri's fleet.

Overall, the acquisition underscores Bahri's commitment to fleet modernisation and positions it for continued leadership in the global VLCC market.