The United Arab Emirates has made available for sale a Saudi crude cargo that had been loaded on the Gem No. 2 supertanker, a vessel that suffered a strike and subsequent leak off the UAE coastline last month, according to three trade sources and a tender document.
The tanker was hit by an unidentified projectile, leading to a spill that UAE authorities moved to contain. Officials halted the leak in late October and have carried on with cleanup operations along the affected shorelines.
A tender document reviewed by trade participants shows the UAE’s energy ministry offered the Saudi Arab Light cargo for transfer by ship-to-ship loading during a window running from November 10 to November 20. The tender was closed on Monday. The volume put up initially was around 1.7 million barrels and was later revised to 1.87 million barrels, according to a separate document seen by market participants.
It is uncommon for the UAE to market Saudi crude, though one trade source said Saudi Aramco has authorised the UAE to sell this particular cargo on its behalf. Another participant noted that the contractual and pricing terms for the Saudi cargo were in line with those being offered by Abu Dhabi National Oil Co.
Both the UAE and Saudi Arabia have been seeking to preserve crude export flows despite an uptick in threats and attacks on commercial shipping in and around the Strait of Hormuz. Trade participants say those maritime security incidents have elevated risks and raised costs for exporters and others engaged in the region's seaborne trades.
Trade sources additionally reported that both countries have made available incentives, including freight discounts, to help attract buyers for offered cargoes. Authorities and the national oil company named in the documents did not provide comment in response to requests.
Contextual note - Since the onset of the US-Israeli war with Iran, attacks on commercial vessels in the Gulf have been cited as increasing security concerns, financial costs for oil exporters, and fears over environmental damage stemming from such incidents.