Offshore Ceuta emerges as dark STS Russian crude transfer hub – Vortexa

Four very large crude carriers (VLCCs) with a total carrying capacity of 8 million bbls of crude have been floating off Ceuta in the Mediterranean awaiting ship-to-ship (STS) transfers of Russian Urals, according to cargo tracker Vortexa.

PHOTO: Aerial view of the Port of Ceuta, Spain. Getty Images

Three of these VLCCs were previously involved in a first round of STS activity in the North Atlantic Sea between June-July last year, Vortexa’s crude market analyst Armen Azizian says. He argues that as tides are usually high during this time of the year in the North Atlantic, these tankers are now congregating off Ceuta to carry out a second round of STS transfers.

Azizian thinks that North Atlantic is a suitable area to carry out dark STS transfers due to a "lack of imagery", meaning that these vessels may turn off their AIS transponders or use other means to remain undetected.

“I believe the operators know this so take advantage of the region," Azizian said.

Azizian also points out that there has been a recent rise in STS transfers of Russian Urals crude off Kalamata in Greece. This region is more suitable for STS transfers of Russian crude and products moving out of the Black Sea.

VLCC tanker Lauren II has loaded 2 million bbls of Urals via STS transfer off Ceuta and is on its way to China, according to Vortexa. Fully loaded VLCCs typically have to take the longer route around the Cape of Good Hope to China, as they are unable to transit via the Suez Canal due to draft limitations, Azizian adds.

STS transfers of Urals crude could shift back to the North Atlantic during the summer months, when tides are more favourable, Azizian says.

Vortexa has found that 48 tankers that used to carry Iranian crude have switched to carrying Russian Urals and ESPO crudes since March last year.

Meanwhile, an area off Malaysia in the East has been a hotspot for STS transfers of Iranian and Venezuela crude. It is unclear whether it will also be used for Urals transfers to the same extent.

By Nithin Chandran

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