Saudi Vela quits spot market ahead of merger
Saudi Aramco's chartering arm Vela International Marine appears to have quit the spot market ahead of its planned merger this year with the National Shipping Company of Saudi Arabia (Bahri), Argus reports.
Vela has not been seen in the spot market for Ras Tanura – US gulf cargoes since 18 December.
Bahri is set to become Saudi Aramco's exclusive provider of VLCC crude shipping services in 2013, once the merger with Vela is finalised.
Last year, Saudi Aramco signed an agreement to sell Vela to Bahri for approximately $1.3bn in cash and shares, and on 7 January, Bahri requested the Saudi Arabian Council of Competition's approval for the merger.
If approved, Vela will transfer ownership of its entire fleet to Bahri. And Bahri will become Saudi Aramco's exclusive provider of crude oil shipping services under a long-term agreement.
With 77 vessels in its fleet, including 32 VLCCs, 20 chemical tankers, five product tankers, four roll-on roll-offs and 16 vessels under construction, Bahri will to become the fourth-largest owner of VLCCs globally, according to Saudi Aramco.
