Iran Opens Gulf of Oman Oil Terminal to Avoid Hormuz Strait

Thursday, July 22, 2021

Iran has opened its first oil terminal in the Gulf of Oman, Iranian President Hassan Rouhani said on Thursday, to allow Tehran to avoid using the Strait of Hormuz shipping route that has been a focus of regional tension for decades.

"This is a strategic move and an important step for Iran. It will secure the continuation of our oil exports," Rouhani said in a televised speech.

"Today, the first shipment of 100 tonnes of oil is loaded outside the Strait of Hormuz. This shows the failure of the U.S. sanctions."

Rouhani said Iran aimed to export 1 million barrels per day (bpd) of oil from Bandar-e Jask, a port on Iran’s Gulf of Oman coast, just south of the Strait of Hormuz.

Iran has often threatened to block the Strait if its crude exports were shut down by U.S. sanctions, reimposed by Washington three years ago when then president Donald Trump abandoned Tehran's nuclear deal with six major powers.

Tehran and U.S. President Joe Biden's administration have been in indirect talks in Vienna since early April to revive the deal, under which Iran agreed to curb its nuclear program in return for the lifting of most international sanctions.

The Strait is a narrow channel at the mouth of the Gulf through which about a fifth of the world’s oil passes from Middle East producers to markets in Asia, Europe, North America and beyond.

There have been periodic confrontations between Iran’s elite Revolutionary Guards and the U.S. military in the area. 

(Writing by Parisa Hafezi; editing by Barbara Lewis)

Categories: Middle East Coastal/Inland Terminals Oil Exports

Related Stories

MISC Secures Long-Term Charter for Papua New Guinea's First FSO

Malaysia Offers Nine Exploration Blocks in 2026 Bid Round

Seatrium Unit Launches Arbitration Against Petrobras over FPSO Contract

Transocean-Valaris Tie-Up to Create $17B Offshore Drilling Major with 73 Rigs

Vantage Drilling’s Ultra-Deepwater Drillship Heads to India Under $260M Contract

QatarEnergy, Petronas Ink 20-Year LNG Supply Agreement

ADNOC Gas Signs $3B LNG Supply Deal with India’s HPCL

Saipem Nets Multibillion-Dollar Job at World's Largest Offshore Gas Field

Major Oil and Gas Projects Drive Strong OSV Demand in the Middle East

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Current News

Inpex Secures Environmental Approval for Indonesia’s Abadi LNG Project

MISC Secures Long-Term Charter for Papua New Guinea's First FSO

Dolphin Drilling, Vantris Ink Marketing Deal for Blackford Dolphin Semi-Sub

Saipem Agrees $272M Deal to Acquire Deep Value Driller Drillship

DUG Hooks Multi-Client Seismic Reprocessing Survey off Malaysia

MISC, PTSC Extend Ruby II FPSO Operations Offshore Vietnam

Petronas Takes Operatorship of Oman’s Offshore Block 18

Mubadala Hires SLB for Deepwater Drilling Services Offshore Indonesia

Malaysia Offers Nine Exploration Blocks in 2026 Bid Round

Seatrium Unit Launches Arbitration Against Petrobras over FPSO Contract

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com