Adnoc adds crude tankers to its fleet

Adnoc is spending nearly USD 1 bn to bring more of its export chain under its own control. Adnoc Logistics & Services has acquired five large crude carriers from Frontline for nearly USD 590 mn — two vessels at roughly USD 115 mn each and three vessels at roughly USD 120 mn apiece, three sources familiar with the matter told Reuters. The company also bought three very large gas carriers for a combined USD 345 mn. The company declined to confirm the acquisitions, saying it doesn’t comment on market speculation.

Why it matters: Disruptions in the Red Sea and at Hormuz have tightened tanker availability — pushing Adnoc to charter around 15 crude carriers to maintain shuttle movements and customer deliveries. Adnoc has also offered cargoes from Fujairah, Zirku Island, and Das Island, and through ship-to-ship transfers between Fujairah and Sohar, giving buyers more ways to lift barrels despite disruption around Hormuz.

OUR TAKE- Acquiring five VLCCs gives Adnoc greater control over shipping capacity and could reduce its reliance on spot charters when regional disruptions tighten vessel availability — though it does not remove the risks facing facilities inside Hormuz.