SAUDI OWNER AWARDS MAJOR TANKER CONTRACT

The deal encompasses 10 tankers of 50,000dwt and strengthens a long-running business relationship between Bahri, otherwise known as the National Shipping Corporation of Saudi Arabia, and the South Korean builder. It also underscores HMD’s global prominence in the construction of medium-range (MR) tankers within a diversified production output from the main Ulsan yard on the Korean peninsula and its subsidiary Hyundai-Vietnam Shipbuilding.

The latest newbuilds will be based on a proven IMO Type 2 design for the transportation of clean petroleum products and a range of chemicals, and are scheduled to be delivered in batches over the period between the first quarter of 2022 and the opening quarter of 2023.

Bahri said the agreement represents a major step forward in its strategy of tonnage growth and renewal. The company’s overall fleet of 87 vessels already in service includes 34 chemical and product tankers deployed by Bahri Chemicals, an 80/20 joint venture of Bahri and Saudi Arabian Basic Industries Corp (SABIC).

The 10-ship tanker contract closely follows the commissioning of the first of four Kamsarmax bulk carriers booked by the Saudi group with HMD for Bahri Dry Bulk, the 60/40 joint undertaking of Bahri and Arabian Agricultural Services Co (ARASCO). Construction of the quartet was assigned to Hyundai-Vietnam Shipbuilding, located in the central province of Khanh Hoa and ranked as Vietnam’s leading builder.

Bahri investment also entails a 319,000dwt crude oil carrier due to be completed in October 2021. The VLCC order was entrusted to International Maritime Industries (IMI) of Ras Al-Khair, Saudi Arabia, and subcontracted to Hyundai Heavy Industries (HHI). The latter is a partner in IMI, together with Saudi Aramco, Bahri and Lamprell.

When fully operational, the nascent IMI complex will be the largest maritime industrial facility in the region, with planned capabilities across offshore and commercial vessel markets, up to VLCC size. The project involves technology transfer from HHI to IMI.