Amid escalating Middle East tensions and threats from Iran, the United Arab Emirates (UAE) has cautiously maintained its oil supply through the strategic Strait of Hormuz. The UAE managed to discreetly transport oil that was previously stuck in the Gulf to international markets. According to a Reuters report, the UAE's state-owned oil giant, ADNOC, exported at least 6 million barrels of crude oil out of the Gulf in April. This shipment included 4 million barrels of Upper Zakum crude and 2 million barrels of Das crude, transported via four large tankers.
Strategic Exports and Regional Context
While the current export volume is only a fraction of what the UAE exported before the threat of conflict with Iran, it highlights the significant risks being taken by both oil sellers and buyers. In contrast, other Gulf nations like Iraq, Kuwait, and Qatar have either reduced or halted their oil sales. Some countries have lowered prices to attract buyers, while Saudi Arabia is now primarily relying on the Red Sea route for its oil shipments, avoiding the volatile Strait of Hormuz.
Stealth Tactics: Disabling Location Trackers
The Reuters report revealed that the UAE disabled the location trackers on several of its oil tankers to prevent identification by Iranian forces. The vessels kept their Automatic Identification System (AIS) turned off, a system typically used to track ship locations globally. By disabling these trackers, monitoring the movement of the vessels became extremely difficult. Interestingly, this is a tactic that Iran itself has long employed to evade US sanctions.
Ship-to-Ship Transfers and Key Tankers
After successfully crossing the Strait of Hormuz, some tankers performed ship-to-ship transfers in open waters. This oil was subsequently delivered to refineries in Malaysia, South Korea, and other Asian countries. A portion of the crude was also moved to storage terminals in Oman, while specifically, the vessel named 'Hafeet' carried 2 million barrels through Hormuz, which was later sent to Malaysia's Pengerang refinery. Another tanker, 'Aliakmon-1', delivered 2 million barrels of crude to Oman.
Operational Risks and Future Outlook
This entire operation was fraught with risk for the UAE. Recently, the UAE alleged that Iran carried out a drone attack on an empty ADNOC tanker, the 'Barakah', while it was transiting the Strait of Hormuz. Since the onset of regional hostilities, ADNOC's oil exports have dropped by more than 1 million barrels per day. Despite this decline, the company remains committed to maintaining its supply. Reports indicate that ADNOC is currently in negotiations with Asian refineries regarding new oil supply contracts for the month of May.