What Is the Story Behind the Auction of the Iranian Oil Tanker in Indonesia?

The U.S.–based Bloomberg News Agency reported that the Iranian supertanker Arman 114, which was seized in 2023 while attempting to transfer oil to another tanker in Indonesian waters, has been put up for sale along with its cargo.

According to Rokna, Indonesia has set the starting price for the auction of this U.S.-sanctioned vessel at 70 million dollars.

Arman 114 is carrying 167,000 tons of sweet crude oil, and the auction is overseen by the Indonesian Attorney General’s Office. Under the auction terms, the buyer will be responsible for the vessel’s storage and security costs. The winning bidder must relocate the tanker within 30 days of purchase.

Ship brokers say that a new supertanker is typically sold for around 126 million dollars, while a 15-year-old vessel sells for about 59 million dollars, and they estimate that a reasonable price for this supertanker would be around 16 million dollars.

The analytical firms Vortexa and Kpler state that the Arman 114 appeared to be carrying Iranian oil prior to its seizure.

According to Bloomberg, the sale of such vessels is difficult due to sanctions-related complications associated with any transaction.