The National Shipping Company of Saudi Arabia (Bahri) announces that it signed with S-Oil Corporation, Seoul, South Korea, April 8th, 2015 a Contract of Affreightment (COA) for a period of ten years to transport crude oil cargoes on VLCCs from the Arabian Gulf and Red Sea to Onsan, Korea. The commercial operation is expected to commence during the third quarter of 2015 and the financial impact is expected to appear in the third quarter of 2015. The expected minimum annual revenue is in the region of 250 million Saudi Riyals.

The Contract forges a new and increased level of relationship between the two companies, who have had substantial spot voyage charter business together during the past 10 years. S-Oil will benefit from the flexibility and quality operations that the Bahri VLCCs bring to this partnership, while Bahri VLCCs will have continuous access to AG/East bound cargoes creating additional diversity of employment routes and the ability to further optimize fleet utilization.