Amid tightened vessel supply due to the Middle East crisis, Abu Dhabi’s national oil company ADNOC has paid about $590 million to buy five supertankers to better manage its crude deliveries, Reuters reported on Friday, quoting sources with knowledge of the deal.
ADNOC has acquired the five very large crude carriers (VLCCs) as the United Arab Emirates (UAE) looks to boost crude oil production and exports after exiting OPEC earlier this year, and despite the regional conflict that has stalled traffic through the Strait of Hormuz.
ADNOC Logistics and Services (ADNOC L&S) has bought the supertankers, capable of carrying up to 2 million barrels of crude oil each, from Frontline Plc, according to Reuters’ sources.
In an emailed statement to Reuters, ADNOC L&S said, “We do not comment on rumours or market speculation. ADNOC L&S continually reviews its fleet requirements and strategic growth opportunities.”
ADNOC L&S owns over 340 vessels and operates 600 chartered ships.
Meanwhile, the UAE produced 4.1 million barrels per day (bpd) of crude oil in June, its highest output ever, according to estimates by the International Energy Agency.
The crude oil production in June was the highest ever on record for the UAE, nearly double the output from March 2026 when Middle Eastern producers slashed production at the start of the Hormuz crisis. The production level also topped the previous record of 4 million bpd from the spring of 2020 when the OPEC+ producers were fighting for market share in a brief price war during peak Covid.
The UAE has sought to adapt to the closure of the Strait of Hormuz by sneaking tankers in dark mode through the Strait and increasingly offering to sell many of its crude grades for loading offshore Fujairah and at Sohar in Oman, outside the Strait.
ADNOC is also boosting its LNG carrier fleet to grow its international gas business.
Earlier this month, ADNOC Logistics and Services placed a $900-million order for four newbuild LNG carriers to expand its fleet as Abu Dhabi’s national oil company seeks to boost gas exports to seize the global rise in LNG demand.
By Tsvetana Paraskova for Oilprice.com
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