Bahri to supply S-Oil with at least 70 mn bbl of crude oil annually over the next 10 years

South Korea’s S-Oil taps Bahri for crude oil: Saudi Arabia’s national shipping company Bahri renewed its long-term contract of affreightment with South Korean refiner S-Oil Corporation, according to a statement released on Thursday. The contract was extended for a 10-year period, the statement read, without disclosing the transaction’s value.

The details: Bahri is set to transport crude oil cargoes via very large crude carriers (VLCCs) from the Red Sea and the Arabian Gulf to South Korea’s Onsan. Under the contract, S-Oil will receive a minimum of around 70 mn bbl of crude per year.

Bahri + S-Oil have a shared history, with the agreement marking a 20-year partnership milestone between the pair. The two players inked the original contract back in 2015, which was forecast to generate some USD 67 mn. The renewal reaffirms this “mutual trust and long-standing partnership” as the companies work together to strengthen economic and energy ties between the two countries, Bahri CEO Ahmed Al Subaey said.

Expansion capacity: Bahri added nine VLCCs valued at USD 1 bn in September — bringing its total operational fleet to 50 of the advanced vessel model. The deliveries came one year after Bahri signed a SAR 3.75 bn (c. USD 1 bn) agreement with global shipping outfit Capital Maritime and Trading Corporation to procure nine VLCCs.