Saudi Aramco’s New Plan to Supply Oil to Asian Nations
RIYADH / DUBAI: Saudi Arabia’s state-run oil company Saudi Aramco has offered to sell crude oil to some Asian refineries outside the Strait of Hormuz, which is already experiencing tensions and disruptions in shipping. British news agency sources say that Aramco is negotiating privately with some buyers to supply Arab Medium and Arab Heavy crude oil via ship-to-ship transfers at sea off the coast of the UAE port of Fujairah.
Sources said that this oil is expected to board in September. The initiative seeks to provide crude oil to Asian customers without transiting the Strait of Hormuz, where many shipping firms have been steering clear of ships because of security concerns.
Alternative Export Terminals and Regional Impact
Saudi Aramco has not responded to the case. The company has already begun to redirect some of its exports of Arab Light crude to the Red Sea port of Yanbu, and has also extended offers of oil supplies through Sidi Kerir port in the Mediterranean in Egypt.
The report noted that the continuing troubles in the Strait of Hormuz and the Red Sea have affected Aramco’s oil sales in key markets in Asia, such as India. Meanwhile, UAE has kept shipping crude oil from inside the gulf out of it.