Management Report
Transportation of Crude Oil and Gas
Crude oil transportation sector is the most important source of income for NSCSA. This segment has a fleet consisting of (17) VLCCs. In 2009, (4) VLCCs were received from a total of (6) VLCCs which were contracted to build in March 2006. This fleet is operated on the basis of long-term contracts (Time Charter) and in the spot market (Spot Market) through a balanced strategy for risk management of market price fluctuations based on driving a balance between variable and fixed transport costs according to a formula that ensures a minimum stable revenue and gives the company the opportunity to benefit from any rise in the spot market. In 2009, (6) VLCCs were chartered on limited-term charter contracts, of which (3) were chartered to Korean Hanjin Company; (2) to Belgium Euronav
Company, and (1) to Vela International Marine Ltd., a subsidiary of Saudi Aramco. Currently (11) VLCCs are operated on the spot market. The rates are determined according to prevailing market competitive rates that were internationally accepted upon signing of the respective charter contracts. Among the major customers of NSCSA on this market are Vela, Shell, BP, Chevron and Exxon Mobil. Crude oil and liquefied petroleum gas (LPG) transportation sector posted an annualized operating income of SAR 268.8 million in 2009, compared to SAR 685.6 million in 2008, representing 72% of the total operating income in 2009.
VLCC’s Fleet
Year of Manufacture
Weight )Static Tons(
Length )Meter(
Width )Meter(
Number of Tanks
Speed )Knots(
S#
VLCC Name
Type
1
Ramlah Ghawar Watban Hawtah Harad Marjan Safwa Abqaiq Wafrah Safaniyah
1996 1996 1996 1996 1996 2001 2002 2002 2002 2007 2007 2008 2008 2009 2009 2009 2009
Double-Hull Double-Hull Double-Hull Double-Hull Double-Hull Double-Hull Double-Hull Double-Hull Double-Hull Double-Hull Double-Hull Double-Hull Double-Hull Double-Hull Double-Hull Double-Hull Double-Hull
300,361 300,361 300,361 300,361 300,361 302,700 302,700 302,700 302,700 318,000 318,000 318,000 318,000 318,000 318,000 318,000 318,000
340 340 340 340 340 333 333 333 333 333 333 333 333 333 333 333 333
56 56 56 56 56 58 58 58 58 60 60 60 60 60 60 60 60
17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17
15 15 15 15 15
2 3 4 5 6 7 8 9
17.1 17.1 17.1 17.1 16.7 16.7 16.7 16.7 16.7 16.7 16.7 16.7
10 11 12 13 14 15 16 17
Leyla Jana
Habari Kahla Dorra Ghazal Sahba
5,256,605 Total Capacity
20
Annual Report 2009 The National Shipping Company of Saudi Arabia
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