National Shipping Company of Saudi Arabia (Bahri) has agreed with South Korea's S-Oil Corp to ship crude oil cargoes from the third quarter of this year.

Under the 10-year contract, Bahri will ship the oil on very large crude carriers (VLCCs) from the Arabian Gulf and Red Sea to the port of Onsan in South Korea, Bahri said on Wednesday.

Bahri expects to book revenues of at least SR250 million riyals ($67 million) annually from the deal.

It became the sole provider of VLCC crude oil shipping services to Saudi Aramco after it purchased the marine unit of the oil giant in a deal first announced in 2012 but which was completed last year.

Last July, Saudi Aramco's unit Aramco Overseas Co said its ownership in S-Oil would rise to 63.4 per cent after it agreed to buy in principle Hanjin Group's 28.4 per cent stake in the South Korean refiner. - Reuters