Key facts
- ADNOC purchased five supertankers for approximately $590 million.
- The acquisition is intended to enhance crude oil delivery management.
- The UAE's crude oil production reached a record 4.1 million bpd in June.
- ADNOC Logistics and Services operates a large fleet of vessels.
- The company is also expanding its LNG carrier fleet.
Abu Dhabi's national oil company, ADNOC, has acquired five supertankers for approximately $590 million to bolster its crude oil delivery capabilities amidst a tightening global shipping market exacerbated by Middle East tensions. The purchase by ADNOC Logistics and Services (ADNOC L&S) aims to support the United Arab Emirates' efforts to increase crude oil production and exports.
These very large crude carriers (VLCCs), each capable of transporting up to 2 million barrels of crude oil, were reportedly bought from Frontline Plc. ADNOC L&S stated that it continually reviews its fleet requirements and growth opportunities but declined to comment on market speculation.
The UAE's crude oil output reached a record high of 4.1 million barrels per day in June, according to International Energy Agency estimates. This surge in production comes as the UAE seeks to navigate challenges posed by potential disruptions through the Strait of Hormuz, employing strategies such as dark mode transit and offering offshore loading options.
In addition to its crude oil operations, ADNOC is also expanding its liquefied natural gas (LNG) business, recently placing a $900 million order for four newbuild LNG carriers to capitalize on growing global demand for gas.