Abu Dhabi National Oil Company (ADNOC) said on Saturday it is lowering offshore production to manage storage needs as the U.S.-Israeli war on Iran disrupts shipping through the Strait of Hormuz, while onshore operations continue.
The company said the move is intended to preserve operational flexibility so output can return to normal without a prolonged delay when conditions allow. It added that established protocols are in place and that it is working with authorities to protect personnel, assets and operations.
ADNOC said it is still supplying global markets by using export capacity outside the Strait of Hormuz and international storage facilities. Its business units are reviewing the situation on a product-by-product and transaction-by-transaction basis as the shipping disruption continues.
The war entered its eighth day on Saturday. The Strait of Hormuz, which handles about 20% of global oil and LNG supply, has been blocked to shipments, raising pressure on regional exporters as storage fills.
Analysts have said the UAE and Saudi Arabia may soon need to reduce output if the disruption persists. In Saudi Arabia, Aramco is temporarily routing some crude cargoes to the Red Sea port of Yanbu to serve customers that cannot access Gulf loadings. Even so, volumes moving from the Red Sea remain well below the level needed to offset losses linked to the strait.
Elsewhere in the region, Kuwait Petroleum Corporation began cutting oil production on Saturday and declared force majeure. That followed earlier oil and gas output reductions in Iraq and Qatar.
