Key Takeaways
- Abu Dhabi National Oil Co (ADNOC) has purchased five very large crude carriers for $590 million.
- The acquisitions are part of ADNOC's broader push to control its supply chain and ensure oil delivery.
- ADNOC L&S has also ordered 25 to 30 new vessels, including crude tankers, LNG carriers, and LPG carriers.
Abu Dhabi National Oil Co (ADNOC) has expanded its fleet by purchasing five very large crude carriers (VLCCs) for approximately $590 million, according to sources familiar with the matter. These acquisitions are part of ADNOC's broader strategy to control more of its supply chain and ensure oil delivery amid geopolitical tensions in key maritime routes.
The purchases include two 2012-built vessels each costing about $115 million and three 2015-built vessels each priced at around $120 million. ADNOC Logistics and Services (ADNOC L&S) acquired these vessels from tanker company Frontline Plc, the sources said.
While producers such as Iraq, Qatar, and Kuwait are struggling to place oil in the market due to disruptions caused by conflicts in the Middle East, the United Arab Emirates has sold millions of barrels directly to refiners through spot tenders. ADNOC has also acquired three very large gas carriers (VLGCs) for about $115 million each.
ADNOC L&S operates more than 900 vessels, including seven VLGCs and eight VLCCs, according to a fact sheet posted on its website. The company's investment in new ships follows months of disruption to shipping through the Red Sea and the Strait of Hormuz.
In addition to expanding its owned fleet, ADNOC L&S has chartered about 25 crude tankers from South Korea’s Sinokor after regional tensions escalated. About 15 vessels were deployed as shuttle tankers to move crude from facilities inside the Strait of Hormuz to storage terminals in Fujairah and Oman.
The remaining vessels supplied customers directly, according to a source. Frontline declined to comment on the matter. ADNOC's statement noted that it continually reviews its fleet requirements and strategic growth opportunities but does not comment on market speculation or rumours.
This move by ADNOC underscores the company’s commitment to maintaining operational flexibility and ensuring uninterrupted supply of crude oil, despite ongoing geopolitical challenges in key maritime routes.
