ADNOC’s trading arm has offered Iraqi crude cargoes to Asian refiners using the tanker-shuttle system the Abu Dhabi energy group has deployed to move oil through the Strait of Hormuz, according to Bloomberg.
The offers cover Basrah and other Iraqi crude grades, with Indian refiners among the buyers approached. Under the shuttle model, tankers make short voyages through Hormuz, often without broadcasting their positions, before cargoes are typically transferred to other vessels outside the Persian Gulf.
Iraq’s State Oil Marketing Organization (SOMO) has confirmed the commercial relationship, but not a formal shuttle agreement.
“ADNOC is one of the buyers SOMO deals with,” SOMO director-general Ali Nizar al-Shatri said. He said SOMO sells crude to buyers able to load the oil and carry it through the Strait of Hormuz. Al-Shatri also said Iraqi oil exports through the country’s southern outlet had risen to about 2m barrels per day in August. Iraq generally sells the crude on a loading basis, leaving transport through Hormuz to buyers and trading companies.
The shuttle system has been used for ADNOC’s own exports since April, with ship-to-ship transfers outside the Persian Gulf. Transfer locations have included Fujairah in the UAE, Sohar in Oman, India’s west coast and Malaysia.
ADNOC Logistics & Services (ADNOC L&S) is also expanding its tanker capacity. On 7 August it announced a $1.3bn acquisition of 11 vessels, comprising six VLCCs and five very large gas carriers. The six VLCCs are scheduled to enter service in the third quarter of 2026, increasing its VLCC fleet to 14 vessels.
ADNOC is an energy group wholly owned by the Emirate of Abu Dhabi. ADNOC Trading was established in 2020 as a 100%-owned ADNOC Group subsidiary and trades crude oil, LNG and other ADNOC products.