The Edge Malaysia reports that Indonesia is set to auction a US-sanctioned supertanker along with its crude oil cargo for a reserve price of US $70 million (approximately RM 289.8 million).
Navigating Sanctions: Indonesia’s Risky Tanker Auction
In a bold and uncommon move, Indonesia’s Attorney General’s Office is auctioning a seized supertanker carrying light crude oil. The vessel, apprehended in 2023, comes with its full cargo and the responsibility of ongoing upkeep and security falls entirely on the winning bidder.
Key Details
-
The supertanker was sanctioned by the US and is now being sold together with roughly 167,000 tonnes of crude oil.
-
While officials have stayed silent on the origin of the cargo, ship-tracking data suggests that the crude was sourced from sanctioned producers.
-
Critics see this as a test case for how aging, sanctioned vessels are handled in the “dark fleet” — a growing number of vessels operating outside of open markets.
-
About 80% of tankers in this grey-market “dark fleet” are sanctioned, according to broker analyses.
-
Bidders must be prepared to take on all maintenance, repair, and security costs, and must reposition the vessel within 30 days post-auction.
-
There’s no clarity on what buyers are permitted to do with the crude oil — whether they can offload, refine, or sell it.
Implications for the Maritime Industry
This auction marks a critical moment for maritime stakeholders, shining a spotlight on several key issues:
-
Sanctions risk management: Buying a sanctioned vessel isn’t just a transaction — it’s a long-term commitment to managing legal, security, and financial risk.
-
Dark-fleet transparency: Moves like this may force greater discussion around how non-traditional fleets operate, how they’re valued, and how they’re regulated.
-
Operational costs: The requirement for the buyer to assume all maintenance could be a deterrent, especially for older vessels.
-
Policy precedent: This could set a framework for how states deal with sanctioned maritime assets — whether for sale, repurposing, or scrapping.
Did you subscribe to our daily Newsletter?
It’s Free — Click here to Subscribe!
Source: The Edge Malaysia
