Saudi Aramco and the National Shipping Company of Saudi Arabia 'Bahri' have announced signing of a non-binding Memorandum of Understanding (MOU) to pursue the merger of the fleets and operations of Bahri and Vela International Marine Limited, a wholly owned subsidiary of Saudi Aramco. The proposed merger would create a large and more diversified national shipping company. This merger of ships, personnel and business systems from Vela and Bahri along with management responsibility for Saudi Aramco very large crude carrier (VLCC) transportation system will be implemented within the corporate structure of Bahri, according to a latest press release of Saudi Aramco. 'By creating a new global leader in shipping, Saudi Aramco hopes to build a strong company that can leverage its capabilities in the shipping sector and would meet its growing business portfolio,' said Khalid A. Al-Falih President and CEO, Saudi Aramco. With 77 vessels in its fleet following the transaction - 32 VLCCs, 20 chemical tankers, 5 product tankers, 4 roll-on roll-offs (ROROs) and 16 vessels under-construction - Bahri would become the fourth-largest owner of VLCCs globally, creating a platform for continued economic growth and human capital development in the Kingdom. It would also expand the ability of Saudi Aramco and the Kingdom to meet future maritime transport needs for its expanding downstream businesses while continuing to reliably and efficiently serve the current customers of both companies. Through the contemplated transaction, Bahri would be the exclusive provider of VLCC crude oil shipping services to Saudi Aramco under a long-term agreement and would take responsibility for maintaining reliable crude transportation at all times. Furthermore, the two companies plan to explore ways to expand their cooperation in the maritime sector.
