Bahri renews 10-year contract with S-Oil for crude transport

17/10/2025 02:48 AST

Bahri, Saudi Arabia's Kingdom's leading shipping and logistics provider, has 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.

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 renewal represents one of the most significant commercial agreements in Bahri's recent history, a long-term commitment that could utilize up to 10% of Bahri's oil fleet capacity. The contract structure provides strategic resilience by ensuring predictable revenue streams and safeguarding a meaningful share of Bahri's VLCC fleet from exposure to cyclical downturns in global shipping markets.

The agreement marks a major milestone in the 20-year partnership between Bahri and S-Oil, underscoring their shared commitment to operational excellence, reliability, and long-term collaboration in energy transport.

Eng. Ahmed Ali Al-Subaey, CEO of Bahri, said: "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. This agreement will further enhance our fleet utilization, expand employment routes across key trade corridors, and continue delivering world-class shipping solutions that support the global energy supply chain."

Anwar A Al-Hejazi, CEO of S-Oil, said: "We are pleased to extend our partnership with Bahri, a company that has consistently demonstrated reliability, efficiency, and commitment to service excellence. This renewed agreement ensures continued access to Bahri's state-of-the-art VLCC fleet, reinforcing our supply chain resilience and supporting our strategic growth plans for the next decade."

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