Bahri renews 10-year contract with S-Oil Corporation to strengthen global energy logistics

Business

Bahri renews 10-year contract with S-Oil Corporation to strengthen global energy logistics

Bahri, Saudi Arabia’s leading shipping and logistics company, has renewed its long-term Contract of Affreightment (COA) with S-Oil Corporation, one of South Korea’s largest oil refiners. The new 10-year agreement allows Bahri to continue transporting crude oil cargoes on Very Large Crude Carriers (VLCCs) from the Arabian Gulf and the Red Sea to Onsan, South Korea, reinforcing the Kingdom’s role in global energy logistics.

The contract renewal represents one of Bahri’s most significant commercial milestones in recent years, covering up to 10 percent of its oil fleet capacity. It provides strategic stability through predictable revenue streams while protecting Bahri’s operations from market fluctuations in the global shipping industry.

The renewed partnership marks a 20-year collaboration between Bahri and S-Oil, emphasizing mutual trust, operational reliability, and shared goals in enhancing energy connectivity between Saudi Arabia and South Korea.

Eng. Ahmed Ali Al-Subaey, CEO of Bahri, expressed his confidence in the renewed agreement, stating:

“This renewal reaffirms the mutual trust and long-standing partnership between Bahri and S-Oil. Over the past two decades, we have strengthened energy connectivity between Saudi Arabia and South Korea. This agreement will enhance our fleet utilization, expand routes across key trade corridors, and deliver world-class shipping solutions supporting the global energy supply chain.”

Anwar A. Al-Hejazi, CEO of S-Oil, added:

“We are pleased to extend our partnership with Bahri, a company that consistently demonstrates efficiency and service excellence. This renewal secures continued access to Bahri’s advanced VLCC fleet, reinforcing our supply chain resilience and supporting our strategic growth over the next decade.”

This renewed COA reflects Bahri’s mission to advance Saudi Arabia’s leadership in global logistics while aligning with Saudi Vision 2030. The partnership also enhances S-Oil’s supply chain efficiency through Bahri’s sustainable and high-quality shipping operations.

With a fleet of 50 VLCCs, Bahri remains one of the largest VLCC operators worldwide, ensuring continued value creation and operational excellence. The collaboration between the two companies strengthens Saudi Arabia’s position as a key player in maintaining global energy security and promoting long-term strategic cooperation in the energy transport sector.