National Shipping Company of Saudi Arabia (Bahri) has agreed a 10-year contract to ship oil to South Korea’s S-Oil Corporation in a deal worth $67m a year.

Bahri will transport crude from Saudi Arabia to the S-Oil refinery at Onsan in South Korea on very large crude carriers (VLCCs) from the third quarter of 2015.

Saudi Aramco owns 63.4 per cent of S-Oil Corporation after it upped its stake in the complex by buying South Korea-based Hanjin Group’s 28.4 per cent stake in 2014.