The Arabian Petroleum Investments Company (APICORP) signed here an agreement on Sunday to set up a US $1.5 billion “Apicorp – Al-Bahari Fund for Oil Tankers” (Al-Bahari), Saudi Press Agency reported Sunday.
The signing was in the presence of Khalid Al-Falih, minister of energy, industry and mineral resources.
The investment fund aims to own 15 giant oil tankers in three stages at a total cost of US $1.5 billion. This will be financed from the fund’s capital, aside from arranging some commercial loans in which Apicorp will carry out the role of the main investor and director of the fund.
Meanwhile, ‘Al-Bahari’ will exclusively manage the fund commercially and technically. Apicorp’s ownership will reach 85 percent of the fund’s capital while Al-Bahari will own 15 percent. The fund will be a closed fund for a period of 10 years. Its revenues will come from the commercial operation of the giant oil tankers that will be owned by the fund.
In a statement to SPA following the signing, Al-Falih said the signing of the agreement to establish the Apicorp – Al-Bahari Fund for the transportation of crude oil, is a strategic and vital step that will bolster the Kingdom’s status as the biggest source of crude oil in the world. This is in line with its integrated development plans. This step will support the maritime transport industry in conformity with the Kingdom’s long term economic plans that support the leadership’s vision through Saudi Vision 2030.