
The National Shipping Company of Saudi Arabia (Bahri) and Arab Petroleum Investments Corporation (APICORP) have agreed to establish an important new shipping fund.
APICORP Bahri Oil Shipping Fund (ABOSF)’s target is to acquire approximately 15 Very Large Crude Carriers (VLCCs) in three phases, with total investments of up to $1.5 billion composed of debt and equity. APICORP will be the main investor and fund manager, whilst Bahri will be the exclusive commercial and technical manager. APICORP will invest 85% in the Fund with Bahri investing the remaining 15%. This will be a closed-end fund, with a 10 year life, and will deliver returns derived from the commercial employment of the VLCCs.
Abdulrahman Mohammed Al Mofadhi, chairman of Bahri, said, “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.”
Bahri has an existing fleet of 36 VLCCs with 10 newbuild tankers scheduled for delivery in 2017-18. The 15 crude carriers proposed for acquisition under the new fund could make Bahri the largest operator of VLCCs in the world.
This is APICORP’s second shipping fund. The first, APICORP Petroleum Shipping Fund (APSF), was launched as a five year closed-end fund in February 2013 and is reportedly generating attractive returns by taking advantage of growth opportunities in the petroleum products tanker charter market.



















