ADNOC offers crude for delivery via tender, document shows
SEATTLE (Oil Monster): Abu Dhabi National Oil Company (ADNOC) has offered to sell crude oil from the United Arab Emirates in a spot tender, according to a tender document seen by Reuters on Tuesday.
The company is offering cargoes of Upper Zakum, Umm Lulu and Das crude on a cost-and-freight (CFR) basis, with buyers allowed to nominate their preferred destination when submitting bids. Buyers can bid up to 2 million barrels of oil.
The cargoes are available for delivery between June and September.
ADNOC Tender Details and Crude Grades Offered
The three crude grades are produced from fields within the Gulf and are exported through the Strait of Hormuz.
Since the U.S.-Iran war began, ADNOC has managed to export some oil out of the strait with tankers' location trackers shut off to avoid Iranian attacks. The shipments were either unloaded by ship-to-ship (STS) transfer to a vessel that later carried the oil to buyer or sailed directly to buyer.
The crude will be priced at a differential to either ADNOC's official selling prices or the Dubai benchmark, the tender document showed.
What This Means for the UAE Crude Market
ADNOC's decision to offer spot cargoes on a CFR basis gives buyers flexibility in choosing their destination, which could attract a wider pool of international buyers amid ongoing regional supply disruptions. The availability of up to 2 million barrels represents a significant volume that could help offset supply concerns stemming from Strait of Hormuz tensions.
Also Read
- Saudi Aramco Earnings Surge Despite Strait of Hormuz Supply Closure
- Kuwait Expects to Restore 70% of Oil Production After Hormuz Reopens
- U.S. Crude Oil Inventories Drop Sharply as Imports Decline
People Also Ask
What crude grades is ADNOC offering in the tender?
ADNOC is offering cargoes of Upper Zakum, Umm Lulu, and Das crude. All three grades are produced from Gulf fields and are exported through the Strait of Hormuz.
How much oil can buyers bid on?
Buyers can bid up to 2 million barrels of oil across the three crude grades offered in the spot tender.
When are the cargoes available for delivery?
The cargoes are available for delivery between June and September, giving buyers a multi-month window to secure supply.
How has ADNOC been exporting oil amid regional tensions?
ADNOC has shipped oil with tankers' location trackers disabled to avoid detection. Shipments were either transferred via ship-to-ship (STS) operations or sailed directly to buyers.
How will the crude be priced?
According to the tender document, the crude will be priced at a differential to either ADNOC's official selling prices or the Dubai benchmark.
Internal Links
Courtesy: www.reuters.com