ADNOC Logistics and Services, the shipping subsidiary of Abu Dhabi’s national oil company, acquired five very large crude carriers from Frontline Plc in a transaction valued at roughly $590 million, according to reporting based on sources familiar with the arrangement. The purchase reflects efforts to enhance the company’s capacity to transport crude oil amid regional supply chain pressures.
The UAE has substantially increased crude oil output following its departure from OPEC earlier in the year. Production reached 4.1 million barrels per day in June, marking the highest output level recorded for the country. This represented a significant recovery from March output levels, when regional producers decreased production at the onset of shipping disruptions through the Strait of Hormuz. The June figure also surpassed the previous national production record of 4 million barrels per day, which occurred during spring 2020 when OPEC+ members engaged in competitive pricing actions.
Transportation challenges in the Hormuz region have prompted the UAE to develop alternative shipping strategies. These include moving tankers without transmitting location signals through the Strait and increasing sales of crude grades designated for loading at offshore facilities in Fujairah and at the port of Sohar in Oman, located outside the Strait. Each of the newly acquired supertankers has capacity for approximately 2 million barrels of crude oil. ADNOC L&S currently operates a fleet of over 340 owned vessels and manages 600 chartered ships.
Beyond crude oil operations, ADNOC is pursuing expansion in liquefied natural gas transportation. Earlier in the month, the company placed a $900 million order for four new LNG carriers designed to support growth in gas export operations as global demand for liquefied natural gas continues to rise.
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