Aramco Shifts Oil Exports Beyond Hormuz Amid Security Concerns

Saudi Aramco has increased oil exports beyond the Strait of Hormuz, a move seen as a response to security concerns in the region. The company offered to load more oil outside the strait this September, according to sources familiar with the situation.

This comes after Aramco sold at least 4 million barrels of oil in China during August, using ship-to-ship (STS) transfers off Fujairah and Sohar. Two supertankers loaded with Saudi crude bound for China were able to do so via STS transfers at Sohar.

The VLCC 'Xin Hui Yang', expected to arrive in eastern Chinese Ningbo port on September 15th, transferred its Saudi crude cargo to the Singapore-based ship Prosperity around August 22nd. Another vessel, the Algeria Prosperity, has transferred its cargo to Xin Han Yang, which is scheduled to arrive in Zhanjiang, southern China, by September 12.

Aramco also sold at least 4 million barrels of the heavier grades last week to PetroChina and Sinochem after returning to oil loading in the Ras Tanura Port earlier in August. The company has taken measures to avoid attacks while transiting through the Strait, including shutting down trackers on tankers.

Saudi Aramco did not immediately respond to requests for comment. Sources said that bids were due on Wednesday as part of a sale process with Asian buyers of Arab Medium and Arab Heavy crude.