Oil traders are seeking approval from the US government to use some tankers that were sanctioned for their involvement in shipping illicit oil, in an effort to address a vessel shortage and lower prices, Bloomberg reported. At least four companies, Trafigura Group, Vitol Group, Mercuria Energy Group and Abu Dhabi National Oil Company, are in discussions with US officials for licences that would allow them to purchase or lease blacklisted ships. The talks cover about 50 of the roughly 1,600 ships currently sanctioned by the US, and include supertankers able to transport 2 million barrels.
Treasury officials are reviewing the applications and may issue authorisations on a case by case basis rather than a blanket exemption, and no decision is final, the report said. Energy Secretary Chris Wright said last month that the administration is working with investors who buy idled sanctioned tankers, refurbish them and use the ships to transport non-sanctioned oil. Licences from the Treasury or the Office of Foreign Assets Control would apply only to US sanctions; European Union and UK restrictions on the same fleets would remain.