ADNOC Buys $590M Supertanker Fleet Amid Middle East Crisis

Abu Dhabi's national oil company ADNOC has made a significant move to bolster its crude delivery capabilities in the face of tightened vessel supply due to the Middle East crisis. The company paid about $590 million to buy five supertankers from Frontline Plc, according to Reuters.

The very large crude carriers (VLCCs) are capable of carrying up to 2 million barrels of crude oil each, and ADNOC Logistics and Services (ADNOC L&S), the company's logistics arm, has acquired them. ADNOC L&S owns over 340 vessels and operates 600 chartered ships.

The move comes as 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 country 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.