ADNOC Launches Ninth Spot Crude Tender Since June Amid Strait of Hormuz Disruptions
NEW DELHI/SINGAPORE: The Abu Dhabi National Oil Company (ADNOC) has launched its ninth spot crude tender since the beginning of June, offering Gulf-produced crude as the UAE state-owned oil giant seeks to move supplies from inside the Strait of Hormuz, according to trade sources.
The latest tender includes Upper Zakum, Umm Lulu and Das crude, with cargoes available for loading in October and November.
Bids are due by August 24 and will remain valid until August 26, the sources said.
As with previous tenders, buyers can purchase the crude on a free-on-board (FOB) basis from ADNOC facilities at Fujairah Storage, Zirku or Das Island. Buyers may also arrange ship-to-ship (STS) transfers in the Fujairah-Sohar range.
ADNOC has additionally offered the three crude grades on a cost-and-freight (CFR) basis for loading between October and December.
According to one of the sources, ADNOC has informed buyers that bids below a $3-per-barrel premium to Dubai, calculated on a netback Fujairah STS basis, will be automatically rejected.
ADNOC has sold more than 100 million barrels of crude to refiners and traders through its previous spot tenders. The company has used a shuttle fleet to transport crude from the Gulf and transfer it to other tankers in the Gulf of Oman.
The repeated spot tenders highlight ADNOC’s efforts to maintain crude flows and secure alternative logistics routes amid disruptions affecting oil movements through the Strait of Hormuz.
By Reuters
