Saudi Arabia is in discussions with its customers about a plan to provide oil loading services outside the Strait of Hormuz for long-term contract buyers next year, a move that would formalize a delivery method the kingdom adopted during the war with Iran.
According to people familiar with the matter, the talks are still ongoing and must be concluded before the end of the year.
If approved, this would mark a significant change in how Saudi Arabia delivers crude to its customers, as long-term contract supply accounts for the majority of the kingdom's crude oil sales.
Nearly eight months of war have thrown traditional oil shipping routes into disarray, with the Strait of Hormuz corridor severely disrupted.
Major oil exporters in the Gulf region have been forced to adapt to meet customer needs, employing ship-to-ship transfer methods to move oil out of the strait, whereby the seller bears the voyage risk and transfers cargo to other vessels outside the waterway.
This has become a key model for maintaining market supply as parties compete to attract buyers.
According to the people familiar with the matter, Saudi Aramco is also discussing other changes, including choosing different pricing benchmarks and even delivering cargo directly to Asian customers' doorsteps.
Due to the private nature of the talks, the people familiar with the matter requested anonymity.
They said no final decisions have been made yet, and details such as pricing, freight rates, and applicable cargo volumes are still under discussion.