By Weilun Soon and Eko Listiyorini
Nov 24, 2025 – The Indonesian government is putting a US-sanctioned supertanker and its cargo of crude oil up for auction, with a starting price of at least $70 million, according to documents obtained by Bloomberg News.
The Arman 114, a very-large crude carrier flagged from Iran, was seized by Indonesia in 2023 for allegedly transferring oil to another tanker, which resulted in some oil spills. The vessel is currently docked at Batu Ampar port in Batam and is being auctioned off by the Attorney General’s Office, as indicated in a government filing and a statement from the agency.
The price Indonesia's Attorney General's Office is seeking includes the 167,000 tons of light crude oil on board. While officials did not comment on where the fuel came from, ship-tracking data from Kpler and Vortexa showed the tanker had received Iranian crude oil before its seizure.
This unusual move by Indonesia comes at a time when countries and shipping companies are trying to figure out how to deal with older sanctioned vessels that are part of a growing "dark fleet," which transports fuel from producers like Iran, Russia, and Venezuela to various buyers worldwide. Increased pressure from the West on Russian and Iranian oil exports recently has led key buyers in Asia to distance themselves from this trade.
Approximately 80% of the roughly 1,140 tankers classified as part of the dark fleet are under sanctions, according to an August report from BRS Shipbrokers. This percentage has likely increased since then due to new restrictions imposed by the US, EU, and UK. The rise in blacklisted vessels means there is now more competition among these ships for the same oil cargoes.
Meanwhile, legitimate scrapyards and brokers have hesitated to purchase sanctioned ships for dismantling, fearing secondary sanctions. Nevertheless, this year has seen a noticeable increase in US-sanctioned tankers being sold to scrapyards in India — one of the largest ship dismantling locations — facilitated by shadowy traders and unconventional payment arrangements.
A 15-year-old very-large crude carrier typically sells for about $59 million, while a new one costs around $126 million. In contrast, selling an aging VLCC for scrap could yield about $16 million.
Indonesia stated that the successful bidder will be responsible for all costs associated with maintaining, repairing, and securing the asset. They must also move the tanker within 30 days. However, the filing did not clarify what the bidder should do with the tanker and the crude on board.
Indonesia's Attorney General's Office did not respond to a request for comment.