ADNOC buys five supertankers for $590 million amid Hormuz crisis
This digest was compiled by AI from multiple sources — links to the originals are below.
ADNOC Logistics & Services has purchased five very large crude carriers from Frontline Plc for approximately $590 million, according to sources. The tanker acquisition comes as the United Arab Emirates ramped up crude oil production to a record 4.1 million barrels per day in June while navigating the Strait of Hormuz crisis.
The Acquisition
ADNOC Logistics & Services, the shipping arm of Abu Dhabi National Oil Company, acquired five very large crude carriers, each capable of carrying up to 2 million barrels of crude. The vessels were purchased from Frontline Plc, a major tanker operator, for about $590 million, Reuters reported, citing sources familiar with the deal. ADNOC L&S declined to comment on the transaction, stating it reviews fleet needs and growth opportunities continuously. The company currently owns over 340 vessels and manages 600 chartered ships.
Record Production
The UAE produced 4.1 million barrels per day of crude oil in June, its highest ever, according to the International Energy Agency. The figure nearly doubled output from March 2026, when Middle Eastern producers slashed production at the onset of the Strait of Hormuz crisis. The record surpassed the previous peak of 4 million bpd in spring 2020 during the OPEC+ price war. The UAE has adapted to the strait’s closure by shipping crude from Fujairah and Sohar in Oman, outside the strait, and by operating tankers in dark mode.
Fleet Expansion
Earlier in July, ADNOC L&S placed a $900 million order for four newbuild LNG carriers to expand its gas shipping capacity. The UAE is also boosting its LNG carrier fleet to capitalize on global demand for liquefied natural gas. ADNOC’s broader strategy includes exiting OPEC earlier in 2026 to pursue independent production growth.
What's Next
The UAE plans to further increase production capacity, though sustained Hormuz disruptions could challenge logistics. It remains unclear whether ADNOC will acquire additional tankers to support its expanding exports.
2 sources
ADNOC buys five supertankers for $590 million amid Hormuz crisis
