Abu Dhabi National Oil Co. (Adnoc) has significantly expanded its shipping fleet, investing approximately $1.3 billion in new tankers. This expansion includes the purchase of five very large crude carriers (VLCCs) from Frontline Plc for about $590 million. Two of these vessels, built in 2012, cost around $115 million each, while the three from 2015 were priced at about $120 million each. Additionally, Adnoc Logistics and Services (Adnoc L&S) acquired three very large gas carriers (VLGCs) for approximately $115 million each.
These acquisitions are part of Adnoc's strategy to enhance its control over its supply chain and ensure the movement of its crude and gas to customers, especially in light of disruptions in key maritime routes like the Red Sea and the Strait of Hormuz. The company is also reportedly ordering an additional 25 to 30 new vessels, including crude tankers, LNG carriers, and LPG carriers, from various shipyards. Furthermore, Adnoc L&S recently placed a $900 million order for four newbuild LNG carriers to boost its international gas business.
The investment comes as the UAE seeks to increase crude oil production and exports, having achieved a record 4.1 million barrels per day (bpd) in June. The country has been actively employing strategies, such as using shuttle tankers and "dark crossings" where transponders are turned off, to navigate the challenging shipping environment caused by regional conflicts. These efforts have enabled the UAE to maintain its seaborne exports at pre-war levels, primarily supplying Asian refiners in Japan and China. Adnoc L&S currently owns over 340 vessels and operates 600 chartered ships, and also chartered about 25 crude tankers from South Korea's Sinokor following the escalation of regional tensions.
While Adnoc L&S officially stated that it "continually reviews its fleet requirements and strategic growth opportunities" and does not comment on "rumours or market speculation," the scale of these purchases underscores the company's proactive measures. The company's expansion highlights the impact of geopolitical tensions on global shipping logistics and the strategic importance of vertical integration for major oil and gas producers.
