Vela International Marine Limited, a subsidiary of Saudi Arabian Oil Company, signed a landmark merger agreement with the National Shipping Company of Saudi (Bahri), resulting in the creation of one of the world’s largest shipping companies.The signing of the agreement was held Sunday and attended by executive officials of both parties including Khalid A. Al-Falih, president and chief executive officer of Aramco; Abdullah Sulaiman Al-Rubaian, Bahri chairman; Saleh Al-Jasser, Bahri chief executive officer; and Khalid G. Al-Buainain, senior vice president, engineering, capital and operations support.Bahri financial advisers JP Morgan Saudi Arabia, legal advisers Al Jadaan — Clifford Chance, chartered accountants KPMG, and various media representatives were present.Khalid A. Al-Falih, Aramco president and CEO, said the merger would make the joint fleet the fourth largest owner of very large crude carriers (VLCCs) globally, creating a platform for continued economic growth and human capital development in the Kingdom.He said a partnership of this size gives the two national companies a greater ability to compete in world maritime transport markets and achieve further reduction in operation and maintenance as well as recurring expenditure. He said through the merger, Vela was able to increase the numbers of Saudi employees to 20 percent of the work force.
