UAE Offers 1.7 Million Barrels of Saudi Oil for Sale After Tanker Attack in Gulf

• The UAE has launched an unusual tender to sell 1.7 million barrels of Saudi Arab Light crude oil from a tanker damaged in a recent Gulf attack.
• The Gem No. 2 tanker was struck by an unidentified projectile last month, raising concerns over maritime security and potential environmental damage.
• The oil cargo is scheduled for transfer between November 10 and 20 under the supervision of UAE judicial authorities.

The United Arab Emirates has taken the unusual step of offering 1.7 million barrels of Saudi Arabian crude oil for sale through a government-supervised tender, following an attack on an oil tanker in the Gulf amid heightened regional tensions.

According to a tender document, the UAE Ministry of Energy and Infrastructure is overseeing the sale of Saudi Arab Light crude currently carried aboard the Gem No. 2 tanker, which was struck by an unidentified projectile last month.

The transaction is considered unusual because the cargo consists of Saudi-origin oil being marketed by UAE authorities rather than through conventional Saudi crude export arrangements.

Sources familiar with the matter said the oil was aboard the Gem No. 2 when the vessel was hit during a period of escalating security threats to commercial shipping in the Gulf.

The incident occurred against the backdrop of the ongoing conflict involving the United States, Israel and Iran, which has significantly increased risks for vessels operating along important regional maritime routes.

Since the conflict began, attacks targeting commercial ships have raised concerns among international shipping companies, energy traders and governments about the safety of oil transportation through Gulf waters.

The growing threat to maritime traffic has also intensified fears of environmental damage, particularly from incidents involving tankers carrying large quantities of crude oil.

The Gem No. 2 incident attracted attention after reports of an oil leak from the damaged vessel. UAE authorities announced last week that the leak had been successfully stopped, reducing the immediate risk of further oil escaping into surrounding waters.

The tender document identifies the UAE Ministry of Energy and Infrastructure as the seller, with the transaction taking place under judicial supervision by the UAE Federal Public Prosecution.

This arrangement places the sale under the oversight of federal legal authorities, distinguishing it from a routine commercial transaction between oil producers and international buyers.

According to the document, the tender closed on Monday, with the cargo offered for loading between November 10 and November 20.

The oil is expected to be transferred through a ship-to-ship operation within the Gulf, allowing the crude to be moved from the Gem No. 2 to another vessel.

Ship-to-ship transfers are commonly used in international oil trading to move cargo between tankers without requiring unloading at a conventional port terminal.

In this case, the planned transfer follows the damage sustained by the original tanker and the subsequent containment of the reported oil leak.

The sale comes at a time when instability across the Gulf has placed renewed attention on the security of maritime energy shipments. The region remains one of the world’s most important oil transportation corridors, with disruptions potentially affecting international crude supplies, shipping costs and energy markets.

The tender document does not disclose the expected sale price, the identity of potential buyers or the final destination of the cargo. It also does not specify the circumstances under which UAE authorities obtained control of the Saudi-origin oil.