Adnoc Spends $1.3 Billion to Expand Tanker Fleet

Abu Dhabi National Oil Co. spent $1.3 billion to expand its tanker fleet to support surging crude exports following the United Arab Emirates' departure from OPEC. The company's shipping arm, Adnoc L&S, increased its fleet of Very Large Crude Carriers from eight to 14 and acquired five natural gas ships. Six crude carriers and three gas carriers were purchased on the secondary market for delivery this quarter, with two newbuild gas carriers expected in the fourth quarter.

This expansion occurs as the UAE increases oil shipments through the contested Strait of Hormuz amid ongoing conflict between the United States and Iran. Although the UAE utilizes a cross-country pipeline to bypass the strait, that infrastructure handles less than half of the roughly 3.6 million barrels per day exported over the last two months.

Adnoc has moved more crude than any other producer during this period. To ensure the safe movement of barrels out of the Gulf, the company has frequently utilized military escorts and night transits.