Valued at $410 million (SR1.537 billion), the agreement was signed recently during a virtual ceremony, between Abdullah Aldubaikhi, CEO of Bahri, and Seung-Yong Park, chief operating officer and senior executive vice president of HHI, in the virtual presence of key executives from both the companies.

The vessel purchase agreement comes as part of Bahri’s ongoing endeavors aimed at expanding its marine capabilities and renewing its fleet. Scheduled to start being delivered during the first quarter of 2022, the 10 chemical tankers will be built to the highest environmental, fuel-efficiency, and safety standards in line with the company’s commitment to operating responsibly.

Commenting on the agreement, Aldubaikhi said: “As a company committed to contributing to Saudi Arabia’s maritime goals set out in Vision 2030, Bahri has always remained keen on the continual enhancement of its enormous fleet of state-of-the-art multi-purpose vessels.

“The new agreement with HMD for the building of 10 high-spec chemical tankers represents a major step forward in our next phase of growth and further strengthens our leading position in the global maritime industry.

“With the newbuilds entering our fleet over the next two years, we will be further equipped to cater to the varying needs of our customers around the world.”

Park said: “We are extremely pleased that this project has come to fruition, built upon Bahri’s continued confidence and trust in HHI Group’s capabilities. The new agreement is a compelling testimony to HMD’s superior value proposition and its advanced technology-enabled offerings.

“These 10 MR tankers will bring the tally of various types of vessels that we built for Bahri to 61. We are committed to ensuring that our long-standing partner receives high-quality and eco-friendly vessels this time as well, and sincerely hope this project further strengthens our concrete relationship with one of the most renowned shipping companies.”

In May 2020, Bahri took delivery of its new dry-bulk carrier ‘Sara,’ which is the first ship received as part of the agreement signed between Bahri Dry Bulk and HMD in August 2017 to build four new dry-bulk carriers by 2020.

In addition to the three other bulk carriers that are under construction, the company is also expecting a new VLCC, which is currently being built by International Maritime Industries (IMI) and will be delivered by October 2021, lifting Bahri’s fleet of multi-purpose vessels to 101.

One of the world’s largest owners and operators of VLCCs and the Middle East’s largest owner and operator of chemical tankers, Bahri owns and operates a total of 87 vessels, including 41 VLCCs, 34 chemical and product tankers, 6 multipurpose ro-ro vessels, and 6 dry-bulk carriers, in addition to four other carriers on order.