Home / Shipping News / International Shipping News / ADNOC buys two more VLCCs as new Murban futures expected to boost trading

ADNOC buys two more VLCCs as new Murban futures expected to boost trading

Abu Dhabi National Oil Co. purchased two more VLCCs as the UAE’s biggest energy producer expects the new Murban crude futures to boost trading as it plans to boost oil production capacity by 25% to 5 million b/d by 2030.

ADNOC Logistics & Services, its shipping arm, now has a fleet of eight VLCCs with total crude oil cargo capacity of 16 million barrels, ADNOC said in an April 13 statement.

“The VLCC fleet expansion plays a significant role in supporting ICE Murban futures, which is expected to boost trading of the UAE’s flagship Murban crude oil, enabling it to reach new customers and markets around the globe,” it said. “The launch of Murban futures contracts will also allow ADNOC L&S to further improve its vessel capacity utilization in the crude oil sector.”

Murban futures began trading on ICE Futures Abu Dhabi on March 29.

The new acquisitions include a new-build VLCC, equipped with dual-fuel technology, which is expected to be delivered in Q1 2023, and an existing vessel that is scheduled to join the fleet in Q2 2021. ADNOC didn’t disclose the value of the purchase.

The fleet expansion is “driven by increased demand from its affiliates, in particular ADNOC Trading and ADNOC Global Trading, and favorable asset prices for crude vessels,” ADNOC said. In 2020, ADNOC L&S grew its fleet with 16 deep-sea vessel acquisitions.

ADNOC Trading, a new unit focused on trading of crude oil, started operations in September. ADNOC Global Trading, a joint venture with OMV and Eni, began operations in December and will focus on trading of refined products.

The latest acquired vessels have a length of 336 meters with a deadweight of 300,000 mt. The existing vessel is equipped with a scrubber, ADNOC said. The new build vessel is made by Daewoo of South Korea.

ADNOC L&S has an existing fleet of 140 owned vessels and 100 chartered vessels, including for deep-sea shipping, offshore support and marine services.
Source: Platts

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping