Patrol vessel KN. Pulau Marore-322, owned by Indonesia's Maritime Security Agency (Bakamla) patrols to inspect the Iranian-flagged Very Large Crude Carrier (VLCC), MT Arman 114, and the Cameroon-flagged MT S Tinos, as they were spotted conducting a ship-to-ship oil transfer without a permit, according to Indonesia's Maritime Security Agency (Bakamla), near Indonesia's North Natuna Sea, Indonesia, July 7, 2023 in this handout picture released July 11, 2023. Indonesia's Maritime Security Agency (Bakamla) / Handout via REUTERS
By Weilun Soon and Eko Listiyorini
Nov 24, 2025 (Bloomberg) –The Indonesian government is auctioning off a US-sanctioned supertanker and its cargo of crude oil for at least $70 million, according to government documents seen by Bloomberg News.
The Arman 114, a very-large crude carrier flagged to Iran, was seized by Indonesia in 2023 for allegedly transferring oil to another tanker and spilling some in the process. The vessel, currently at Batu Ampar port in Batam, is being offered up for auction by the Attorney General’s Office, according to a government filing and a statement issued by the agency.
The sum that Indonesia’s AGO is seeking for the 1997-built tanker includes the 167,000 tons of light crude it’s carrying, according to documents. While officials did not comment on the origins of the fuel, ship-tracking data from Kpler and Vortexa showed the vessel had received Iranian crude before getting apprehended.
Indonesia’s highly unusual move comes as countries and shippers fret over how to handle aging, sanctioned vessels that are part of a growing dark fleet carrying fuel from producers like Iran, Russia and Venezuela to buyers around the world. Increasing Western pressure on Russia and Iran’s oil exports in recent months has forced key Asian buyers to turn away from the trade.
Read More: Dismantling Dark Fleet Leaves India at Risk of Trump’s Ire
About 80% the roughly 1,140 tankers in the dark fleet are sanctioned, BRS Shipbrokers said in an August report. The proportion has likely increased since then as new restrictions have been rolled out by the US, EU, and UK. The addition of blacklisted tonnage means that while the flow of sensitive crude remains steady, there are now more such vessels competing for those same cargoes.
Meanwhile, legitimate scrapyards and brokers have also stayed away from buying sanctioned ships for scrap for fear of secondary sanctions. Still, this year saw a marked rise in the number of US-sanctioned tankers being sold to scrapyards in India — one of the world’s largest ship-dismantling centers — with the help of shadowy traders and payment set-ups.
A 15-year-old VLCC can sell for around $59 million, according to shipbrokers, a newbuild for around $126 million, while selling an aging VLCC for dismantling could fetch around $16 million.
Indonesia said the successful bidder will have to bear all costs related to the asset in maintenance, repairs and security, and must move the tanker within 30 days, according to the filing. The document did not specify what the bidder must do with the tanker and the crude onboard.
Indonesia’s AGO did not respond to a request for comment.
© 2025 Bloomberg L.P.
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