Aramco Bypasses Hormuz Strait with Ship-to-Ship Oil Transfers

The mechanism relies on a split-voyage approach: Aramco handles the transit through the high-risk maritime corridor before offloading cargo onto secondary tankers near Sohar or Fujairah. This arrangement allows the buyer, specifically Sinopec, to receive shipments at ports like Ningbo and Zhanjiang without exposing their own vessels to the security concerns currently plaguing the strait. For the second consecutive week, the state producer has expanded this model to include Arab Medium and Arab Heavy grades.

This logistical pivot reflects a broader effort to maintain export volumes despite ongoing regional instability. While Aramco recently resumed loading operations at Ras Tanura and Juaymah, the company continues to leverage alternative routes, including the East-West pipeline to Egypt, for its European clients. However, because China’s geography necessitates transit through the Gulf, the ship-to-ship method serves as a critical buffer. By centralizing the risk of the Hormuz leg within its own operations, Aramco has ensured that Saudi oil remains a staple of Chinese energy imports despite the compromised state of traditional shipping lanes.