Oil Transportation Shortly after receiving regulatory approvals during the first half of 2014, Bahri finalized the merger process with Vela’s fleet. In this respect, “Rain Star” was the first VLCC to be transferred to Bahri on July 21, 2014, which was renamed “Nisalah”. In addition, the remaining Vela’s carriers were transferred to Bahri according to the agreed delivery schedule. Transfer of Vela’s fleet, operations, and staff was finalized in mid-December 2014. Under the merger merger agreement Bahri will become the exclusive transporter of Saudi Aramco oil cargoes sold on a Carriage, Insurance and Freight (CIF) basis and originating from Saudi ports. This agreement has been formalized under a Contract of Affreightment (CoA) between the two parties. The merger is a quantum leap for Bahri business that will give the company a strong financial basis on which to build for the future and enhance its position in the field of marine transportation. The new organizational structure that has resulted from the unification of the commercial teams from Bahri and Vela will ensure that customers continue to receive the highest levels of service from Bahri Oil Transportation. Saudi Aramco is to be commended on the close coordination and planning arrangements that they provided throughout the transition process that permitted a smooth transfer of Vela’s assets.
Number of voyages performed by VLCCs during 2014 compared to 2013
2014
2013
Type of operation
No. of voyages No. of VLCCs No. of voyages No. of VLCCs
VLCCs operating in the spot market
177
31
77
15
VLCCs operating under time charter agreements
3
-
11
2
Total
180
31
88
17
30
Annual Report 2014
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