ADNOC boosts VLCC fleet to eight vessels, set to support trading arm

London (Quantum Commodity Intelligence) – Abu Dhabi's ADNOC has added two more VLCC vessels to its existing shipping fleet, taking the total number to eight supertanker, ADNOC Logistics & Services said Wednesday. 

The latest acquisitions bolster ADNOC's capabilities in supplying crude directly to customers across Asia, and are likely to help broaden the activities of ADNOC's trading arm -- which has been expanding over the past year and is expected to become a major participant in crude oil and refined products trading.

The trading division is headed up by veteran industry figure Philippe Khoury, who has previously held a number of senior roles in trading and banking.

The move also coincides with the April launch of the Murban futures oil contract, hosted by ICE futures Abu Dhabi (IFAD).

Murban traded on IFAD and taken to physical settlement will be delivered through the Fujairah storage and trading hub on the east coast of the UAE.

Fujairah enjoys a freight saving compared to ports within the Arab Gulf, plus avoids the Strait of Hormuz.

Murban is ADNOC's flagship grade one of the largest crude streams in the world with a production capacity currently around 1.7 million per day, but this could grow to as much as 2.5 mil b/d by the end of the decade.