The Arab Petroleum Investments Corporation (APICORP) and the National Shipping Company of Saudi Arabia (Bahri) have launched a shipping fund to acquire 15 VLCCs.
The fund will acquire the vessels in three phases, with total investment reaching US$1.5 billion. It will be a closed-end fund covering a period of ten years.
APICORP will invest 85 per cent of the value of the fund and will act as the fund manager, whilst Bahri will input the remaining 15 per cent and handle the commercial and technical aspects.
“This fund will not only reduce Saudi Arabia’s dependence on external crude carriers but also its earnings will be reinvested in the local economy,” said Abdulrahman Mohammed Al Mofadhi, chairman of Bahri.
The acquisitions will also make Bahri one of the biggest VLCC operator in the international VLCC market segment, the company said.