Saudi National Shipping Company (Bahri), the Kingdom’s shipping and logistics provider, announced the renewal of its long-term contract of affreightment (COA) with S-Oil Corporation, one of South Korea’s largest refiners headquartered in Seoul.
According to Bahri, the renewed agreement will extend for a period of 10 years, enabling Bahri to transport crude oil cargoes on very large crude carriers (VLCCs) from the Arabian Gulf and the Red Sea to Onsan, South Korea.
The deal is viewed as one of Bahri’s most significant strategic agreements in recent years, a long-term commitment that could utilize Bahri’s oil fleet capacity.
The 10-year agreement will see Bahri moving a minimum of around 70 million barrels of crude oil annually.
Bahri said the renewal ensures “predictable revenue streams” and safeguards a meaningful share of its 50-VLCC fleet from exposure to “cyclical downturns in global shipping markets.”
Bahri’s CEO, Ahmed Ali Al-Subaey, said the agreement will further enhance Bahri’s fleet utilization, expand employment routes across key trade corridors, and support the global energy supply chain.
“This renewal reaffirms the mutual trust and long-standing partnership between Bahri and S-Oil. Over the past two decades, we have worked together to strengthen energy connectivity between Saudi Arabia and South Korea,” he added.
From his side, S-Oil CEO Anwar A. Al-Hejazi said the extended partnership ensures continued access to Bahri’s VLCC fleet, reinforcing the refiner’s supply chain resilience and growth plans for the next decade.
