Investing

Russian Oil Takes Long Route to Asia After Switches Near Egypt

Vessels identified as the Suezmax tanker Arlan alongside the VLCC Gold Pearl off Port Said on Aug. 10 (Source: European Union, contains)

(Bloomberg) -- Russia is sending a supertanker filled with oil all the way around Africa to Asia, a sign the nation’s fleet may not be immune from Houthi attacks on merchant shipping in the Red Sea.

Two Suezmax-class ships — both of which could theoretically have sailed full through the Suez Canal and then the Houthi-menaced waters to its south — instead switched their cargoes onto the supertanker Gold Pearl near Egypt’s Port Said earlier this month. 

After it took their cargoes, the bigger ship, a so-called very large crude carrier, sat too deep in the water to go through the 120-mile waterway, forcing it instead to go around Africa.

It’s not certain that the contorted logistics were about avoiding the Houthis — especially given that other Russian cargoes continue sailing through the Red Sea. However, tankers hauling the nation’s barrels have come under attack from the militants, potentially making some crews and vessel operators wary of trips through the area.

The Suezmaxes tankers Apus and Arlan, each bringing about 1 million barrels from the Black Sea port of Novorossiysk, met up with the Gold Pearl earlier this month. 

Calls and messages to numbers and email addresses listed on the Equasis maritime database for the managers of the three ships were not answered.

The transfer from the Apus took place between Aug. 6 and Aug. 8, tracking data monitored by Bloomberg show. The two ships moved together throughout the two-day period.

The transfer from the Arlan was hidden. The ship appeared on the same digital tracking system to be closer to Israel when it made the switch off Egypt a few days later. 

Satellite imagery reviewed by Bloomberg show the Arlan and the Gold Pearl side by side on Aug. 10 near Sidi Kerir. That suggests so-called spoofing of the Suezmax’s automated signal, the practice of manipulating vessel tracking. 

The identities of the two ships involved in the cargo switch onto the Gold Pearl were confirmed by TankerTrackers.com Inc, which specializes in detecting secretive vessel movements. 

Shortly after it left the Port Said area on Aug. 11, Gold Pearl’s draft was updated to show that it was full — consistent with having taken on the Suezmax loads. The Gold Pearl is now leaving the Mediterranean Sea, signaling Singapore. 

It had earlier signaled a port call at Algeciras in Spain and paused briefly east of Malta, where it met up with a products tanker, likely to take on fuel for its long-distance voyage.

If the ship’s ultimate destination were to be China, the economies of scale from using a bigger tanker for the extra distance involved might explain the detour around Africa.

Most Shipments

Most Russian crude shipments from its Baltic and Black Sea ports continue to pass through the canal and the Red Sea to India and China. 

However, several have come under attack from Yemen’s Houthis, who have been attacking ships in the southern Red Sea in response to Israel’s military operation in Gaza. The ships have been targeted despite repeated assurances from the rebels that Chinese and Russian vessels can be assured of safe passage.

A third ship-to-ship transfer involving Russia’s Urals crude was carried out in the same area in early August. 

The Aframax tanker Arabela, which was hauling about 730,000 barrels from Russia’s Baltic port of Primorsk, transferred its cargo to the similar-sized Life, which then carried to the Turkish port of Tutunciftlik, near Istanbul.

Shipping data show the Life to be owned by Istanbul-based Modern Gemi Isletmeciligi AS. Until March, the ship was named Beks Sun and owned by Beks Denizcilik ve Ticaret.

--With assistance from Sarah Chen.

©2024 Bloomberg L.P.

Top Videos