UAE Proposes Ship-to-Ship Transshipment Strategy to Move Iraqi Crude Through Strait of Hormuz

Deep News
08/12

According to sources familiar with the matter, the Abu Dhabi National Oil Company (ADNOC) has proposed using its covert ship-to-ship transshipment strategy to transport Iraqi crude, including from Basra, through the Strait of Hormuz to Asian refineries.

The UAE's state oil company has been the most successful producer in moving crude out of the Persian Gulf. It employs a so-called short-distance transshipment tactic, where vessels often turn off their transponders to avoid detection, conduct short-haul transfers, and then reload cargoes onto other ships outside the Gulf.

Sources said that in recent days, ADNOC has offered spot cargoes to Asian buyers and used the same method to transport crude from other Middle Eastern oil producers, with Iraqi crude being the primary focus.

Beyond ADNOC, several other oil producers have also adopted short-distance transshipment, which has become a key method for moving oil out of the Gulf amid ongoing conflict in Iran, helping to curb a rise in global oil prices.

However, it is uncommon for a Middle Eastern country to seek assistance from its neighbors to transport energy exports. An ADNOC spokesperson declined to comment on commercial matters, while Iraq's State Oil Marketing Organization (SOMO) has not yet responded to requests for comment.

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