In response to escalating security risks and maritime disruptions in the Strait of Hormuz, Saudi Aramco has proposed alternative crude oil delivery mechanisms to select Asian refiners to bypass the high-risk maritime choke point.
According to industry sources cited by Reuters, Saudi Aramco is holding private negotiations with key Asian buyers to supply Arab Medium and Arab Heavy crude oil grades via Ship-to-Ship (STS) transfers off the coast of Fujairah in the United Arab Emirates. The proposed loadings, scheduled for September, aim to maintain uninterrupted energy supply chains for Asian markets without requiring tankers to traverse the Strait of Hormuz.
While Saudi Aramco has declined to comment on commercial negotiations, the state oil giant has already diverted portions of its Arab Light crude exports to the Red Sea port of Yanbu, alongside supply options through Egypt’s Mediterranean port of Sidi Kerir. Maritime security concerns in the Strait of Hormuz and the Red Sea have disrupted conventional shipping lanes, impacting crude sales to major Asian markets, including India, while neighboring UAE continues to utilize pipeline infrastructure to bypass the strait for export continuity.
