(April 9): With the Strait of Hormuz still largely blocked and countries globally struggling to get enough oil, there are some 1.2 million barrels of it sitting untouched off the coast of Singapore.
The Arman 114, an Iran-flagged supertanker that Indonesia seized in 2023, is moored near Batam, around 15 nautical miles from the wealthy city state.
The light crude languishing on board isn’t nearly enough to solve the energy needs of Southeast Asia’s biggest economy, but with oil hovering near US$100 ($127.50) a barrel despite the fragile ceasefire, the Arman 114’s cargo is vastly more valuable than it was a few short weeks ago.
Indonesian authorities seized the Arman almost three years ago after it was found illegally transferring crude to another tanker in the country’s waters. An Indonesian court in July 2024 convicted the Arman 114’s captain of environmental offences, sentencing him to seven years in prison and ordering the tanker and its cargo be confiscated for the state.
The captain disappeared before the final verdict and has so far evaded capture.
After two failed attempts at auctioning off the vessel together with its cargo later, the supertanker remains sitting at anchor in Batam, a holiday island and industrial estate about an hour’s ferry ride from Singapore.
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The first auction was in December, when a starting price of around US$70 million drew no bidders. A second sale collapsed in January after interested parties failed to meet licensing requirements.
Back then, the asking price was well below the estimated value of the crude on board, taking into account the fact the oil has been stagnant for several years and may have deteriorated.
Applying a similar discount at today’s prices would imply an opening bid of almost US$100 million.
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While 1.2 million barrels would cover less than a day of Indonesia’s demand, with oil prices still elevated, authorities may have fresh reason to revisit the sale.
The Attorney General’s Office, the body pushing enforcement of the confiscation ruling for the ship and handling related legal proceedings, didn’t respond to a request for comments.
Uploaded by Tham Yek Lee
