By Anthony Di Paola
On August 7, 2026, the largest oil producer in the United Arab Emirates announced a $1.3 billion investment to grow its tanker fleet, capitalizing on strong crude oil exports after the nation exited OPEC and increased its oil shipments through the contested Strait of Hormuz.
The shipping division of Abu Dhabi National Oil Co. (ADNOC) has nearly doubled its Very Large Crude Carriers (VLCCs) from eight to 14. These tankers can carry around 2 million barrels of crude. Additionally, five vessels designed to transport fuels like propane were also acquired.
Despite transit challenges through the Strait of Hormuz due to the ongoing conflict between the US and Iran, ADNOC has managed to move more crude oil through the strait than any other producer in the past two months. The company has also declared its departure from the Organization of the Petroleum Exporting Countries (OPEC), a decision that suggests an increase in production and a heightened need for additional ships in the future.
This year, the oil tanker market has experienced significant changes after a South Korean entrepreneur, supported by a part of the world’s largest container shipping company, acquired numerous supertankers. Even before the conflict with Iran, this activity was driving up tanker earnings, prompting oil producers to secure their own vessels. An industry executive noted earlier this year that companies have been racing to find available tankers.
During the ongoing conflict with Iran, ADNOC has utilized its own ships and chartered tankers to transport crude and refined products, often doing so at night and with military escorts, to move oil out of the Gulf for transfer to other vessels.
Additionally, the UAE has been able to export oil through a cross-country pipeline that bypasses Hormuz. This pipeline has limited capacity, transporting less than half of the 3.6 million barrels per day that the UAE has exported in the past two months, making tanker availability crucial.
Meanwhile, Saudi Arabia, which also has a large tanker fleet, has been using its own pipeline to pump crude from its fields near the Gulf across the Arabian peninsula to the Red Sea for export.
ADNOC L&S has acquired all six VLCCs and three Very Large Gas Carriers from the secondary market, with delivery of these vessels expected this quarter. The last two VLGCs are new builds scheduled for delivery in the fourth quarter.