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Bahri, the Kingdom’s leading shipping and logistics provider, today 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 strategic agreements in Bahri’s recent history, a long-term commitment that could utilize 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. Where under the renewed COA, Bahri will transport minimum of approximately 70 million barrels of crude oil annually.
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.”
The renewed COA aligns with Bahri’s mission to advance Saudi Arabia’s logistics leadership and underscores the Kingdom’s role in ensuring global energy security. It also provides S-Oil with access to Bahri’s high-quality, efficient, and sustainable shipping operations. Being one of the largest VLCC owners globally with a fleet of 50 VLCCs currently, Bahri will ensure continued value creation for both organizations, which strengthens its position as a key enabler of global energy transportation and reflecting the company’s commitment to fostering long-term strategic partnerships that align with Saudi Vision 2030.
