The United Arab Emirates (UAE) has offered to sell up to 1.87 million barrels (mmbbl) of Saudi Arab Light crude recovered from a damaged supertanker off its coast, Reuters reports.
The crude was aboard the Gem No. 2, a supertanker struck by an unidentified projectile off the UAE coast last month, resulting in an oil leak. The UAE’s Energy Ministry offered the cargo for loading through a ship-to-ship transfer between November 10 and 20, according to a tender document reviewed by Reuters.
The initial offer covered approximately 1.7 mmbbl before being revised upward to 1.87 mmbbl in a subsequent document. The tender closed on November 9.
The sale is unusual because the UAE rarely markets Saudi crude. However, a trade source told Reuters that Saudi Aramco had authorized the UAE to sell the oil on its behalf. The terms offered for the Saudi cargo were reportedly similar to those used by Abu Dhabi National Oil Company (ADNOC).
Neither Saudi Aramco nor the UAE responded to Reuters’ requests for comment.
The UAE confirmed on October 30 that the leak from the Gem No. 2 had been stopped, with no new leakage detected. However, coastal cleanup operations were continuing, particularly around Umm Al Quwain, Ras Al Khaimah, Ajman, and Sharjah, where the oil slick had spread. Authorities also continued technical assessments of the vessel to determine how to handle it safely.
The transaction comes amid heightened security risks for oil shipments across the Gulf following the outbreak of the US-Israeli war with Iran. Attacks on commercial vessels and energy infrastructure have increased shipping costs and forced regional producers to explore alternative export arrangements to maintain supply flows.
Saudi Arabia and the UAE have both been working to reduce their dependence on the Strait of Hormuz, a strategic waterway through which a significant share of global oil shipments passes. Saudi Arabia relies on its East-West Pipeline to transport crude to Red Sea export terminals, while the UAE exports crude through Fujairah, which is located outside the strait.
