The National Shipping Company of Saudi Arabia (Bahri) has signed a 10-year agreement to ship crude cargoes belonging to South Korea’s S-Oil starting Q3 2015
According to a company statement, Bahri will ship very large crude carriers (VLCCs) from the Arabian Gulf and Red Sea to the port of Onsan in South Korea. The agreement would result in revenues worth US$67mn annually for Bahri.
South Korea imports more than 2.8mn barrels of oil from Saudi Arabia every year, which is over a third of the country’s total oil imports, according to South Korean Ministry of Oceans and Fisheries.
In order to pave the way for a safe and steady supply of oil to South Korea, the country signed a maritime deal with Saudi Arabia. According to the deal, the ships and crew members of the two countries to be given the status of a national when making port calls to each other. In addition, sailor identification cards issued by both nations will also be recognised, facilitating ease of operation.
