ADNOC pays $590m for five supertankers amid Hormuz crisis
Abu Dhabi's ADNOC is securing its own shipping capacity with a $590 million supertanker purchase to protect record crude exports from Strait of Hormuz disruptions.
ADNOC Logistics and Services has acquired five very large crude carriers from Frontline Plc for roughly $590 million. Each of these supertankers is capable of transporting up to 2 million barrels of crude oil, providing the state-backed firm with significant dedicated shipping capacity.
The logistics arm of Abu Dhabi’s national oil company declined to directly confirm the transaction with Frontline. “We do not comment on rumours or market speculation. ADNOC L&S continually reviews its fleet requirements and strategic growth opportunities,” the company said in an emailed statement.
The acquisition highlights how Middle Eastern producers are being forced to adapt their supply chains to navigate a tightening vessel market and severe regional security risks. With the ongoing Middle East crisis stalling maritime traffic through the Strait of Hormuz, relying on commercial spot markets has become an expensive and unreliable strategy for moving large volumes of crude.
Owning these vessels directly allows ADNOC to protect its export margins and guarantee delivery schedules as it ramps up output. The UAE exited OPEC earlier this year to pursue independent production growth, making reliable logistics more critical than ever for the company's bottom line.
The strategic pivot is already bearing fruit in terms of production volume. The International Energy Agency estimates the UAE pumped 4.1 million barrels per day in June. That figure nearly doubles the output from March 2026, when Middle Eastern producers were forced to slash production as the Hormuz crisis erupted.
The June output also surpasses the previous record of 4 million barrels per day set in the spring of 2020 during an OPEC+ price war at the peak of the Covid pandemic. To physically move this record-breaking crude without using the compromised Strait, the UAE has fundamentally altered its loading operations.
The country is increasingly selling crude grades for loading entirely outside the Strait of Hormuz, utilizing offshore terminals at Fujairah in the UAE and Sohar in neighboring Oman. It has also reportedly navigated the disrupted waterway by running tankers in dark mode.
The $590 million VLCC purchase is part of a broader capital deployment strategy aimed at scaling ADNOC L&S's global reach. The subsidiary already owns over 340 vessels and operates a fleet of 600 chartered ships. Earlier this month, it committed another $900 million to order four newbuild LNG carriers, positioning the company to export more gas amid surging global LNG demand.
