The National Shipping Company of Saudi Arabia (Bahri) has signed a Memorandum of Agreement (MoA) to purchase a very large crude carrier (VLCC), the Hanjin Ras Tanura, for US$75m.

The ship, built in 2011 at South Korea's Hyundai Heavy Industries, will be delivered to Bahri this March.

The company said that the financial implication of the purchased vessel is expected during the second quarter of this year.

In October 2015, Bahri was reported to be negotiating raising of approximately 2.8 billion riyals (US$747m) with local banks via a long-term loan to be used for vessel financing.

The funding was allegedly intended for financing purchase of VLCCs from South Korean shipbuilder Hyundai Heavy Industries.