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

ADNOC Approves $6.2B Offshore Umm Shaif Gas Project

Arabian Drilling Set to Resume Ops with Three Offshore Rigs

Oil Jumps 3% on Renewed US-Iran Conflict

ADNOC, XRG and Mitsui Broaden Energy Cooperation

Oil Climbs on US-Iran Deal Uncertainty

Israel Steps Up Mediterranean Gas Search

SLB to Support Kuwait Oil's AI and Digital Tech Initiative

Hormuz Reopening Risks Turning Oil Shortage Into Glut

Oman Opens Alternative Hormuz Lanes as Shipping Recovery Continues

Qatari LNG Carriers Re-Enter Hormuz as Traffic Through Strait Slumps

Current News

Borr Drilling's Mexican JV Expands Fleet with Five Jack-Ups

Keppel Launches $2.9B Program to Monetize Legacy Offshore Drilling Rigs

Saipem Cuts Earnings Outlook as Middle East Costs Rise

Serica Energy Agrees $194M Pharos Energy Acquisition

Oil Eases After Topping $100, Still Set for Weekly Rise

BP Moves Indonesia CCUS Project Into Offshore Installation Phase

Eni-Petronas JV Starts Indonesia-Bound FPSO Construction

QatarEnergy Prolongs LNG Force Majeure, Charters Out Tankers

Chevron Enlists Velesto’s Jack-Up Rig for Drilling Job off Malaysia

ABL Gets Papua New Guinea FSO Job

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