PIF Energy Plans $2 Billion VLCC Fleet for Gulf Crude Trade
The Dallas-based trader is targeting up to 15 tankers to support shipments from Iraq and other Gulf producers, with vessel identities and financing arrangements still undisclosed.
US energy trader PIF Energy plans to invest $2 billion in acquiring up to 15 crude oil tankers, seeking greater control over shipments from Gulf producers to refineries in Asia and Europe.
The privately held company is targeting secondhand very large crude carriers (VLCCs), according to an October 8 report by Splash. Purchases are under way, although PIF Energy has not identified the vessels or disclosed how the programme will be financed.
The initiative would extend the Dallas-based company’s crude supply and logistics business into direct ownership of a substantial ocean-going tanker fleet.
Iraqi crude underpins the strategy
Founded and led by chief executive Ben Morrow, PIF Energy trades crude oil and refined products, including diesel and jet fuel, serving refineries, governments and industrial customers. Its activities span the US Gulf Coast, Europe and the Middle East. The company’s name stands for “Pay It Forward”.
Iraqi oil is central to the proposed fleet’s employment. Morrow told the Financial Times that PIF Energy expected to trade approximately 25 million barrels of Iraqi crude in October, having previously concentrated on oil sold by Iraq’s State Oil Marketing Organization, or SOMO.
He said the planned fleet would load at Basra and transit the Strait of Hormuz for overseas delivery. The trading volume is his forecast, rather than confirmed completed shipments.
PIF Energy has also pursued upstream opportunities in Iraq, holding discussions with the country’s oil ministry about cooperation in the extraction sector, according to Splash. Those discussions are separate from the tanker acquisition programme.
Securing transport for existing trade
In a company statement dated October 2, PIF Energy said the investment was intended to address transport constraints around the Strait of Hormuz and establish repeatable voyages between producing markets and refinery customers.
The company identified vessel suitability, operational readiness and commercial discipline as priorities for the programme.
The proposed deployment points to a fleet built around PIF Energy’s own supply chain. Owning tankers would give the trader more direct control over vessel positioning and the coordination of loading windows with refinery deliveries.
Its focus on secondhand vessels also fits the short acquisition timetable. Existing ships could become available for deployment sooner than newbuildings, provided inspections, ownership transfers and operational handovers proceed as planned.
The commercial case rests on whether that control improves the execution of PIF Energy’s crude business sufficiently to justify the capital committed to ships. The company has not disclosed enough transaction detail to assess acquisition costs or financing obligations.
Initial purchases targeted within weeks
PIF Energy said on October 2 that it expected to complete its initial acquisition programme within three to four weeks, subject to vessel availability, commercial due diligence and customary closing conditions.
That timetable places the initial target in late October. It remains a company objective rather than confirmation that the full fleet has been contracted or delivered.
No vessel list, age profile, individual purchase prices or completed-delivery count has been disclosed in the reporting reviewed. The $2 billion figure remains the announced investment plan, while 15 ships represents the maximum acquisition target. Financing arrangements have yet to be detailed.
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