On July 22th, 2021, the Islamic Republic of Iran opened its first oil terminal in the Gulf of Oman. This is a strategic move to neutralize the impact of US sanctions on Iranian oil shipments overseas.
The project, which will allow Iran to export oil directly from the Sea of Oman, had faced impediments and delays due to sanctions imposed by the former US administration.
ROUHANI’s website said in a report that the government had spent 530 trillion rials ($2.163 billion) on the Goureh-Jask pipeline and terminal facilities at Jask.
The President ROUHANI said in a television speech: “This is a strategic move and an important step for Iran. It will secure the continuation of our oil exports”.
“We had a terminal and if there was a problem, our oil exports would be cut off,” ROUHANI acknowledged, adding that “today is a great historic day for the Iranian nation”.
ROUHANI said Iran aimed to export one million barrels per day (bpd) of oil from the new facility. At the moment, the project allows 350,000 barrels to be exported per day. Besides this, minister ZANGANEH stated that the production is expected to reach 1 million bpd until March 2022. Iran produced 2.47 bpd in June, according to latest available figures from the Organization of Petroleum Exporting Countries.
The terminal is located near Jask port on the Gulf of Oman, in the south of the Strait of Hormuz. It allows ships headed into the Arabian Sea and beyond to avoid the narrow route. Iran’s main oil export terminal is located at the port of Kharg inside the Strait of Hormuz, a waterway less than 40 kilometers across at its narrowest point.
During the inauguration ceremony the President ROUHANI said: “The first shipment of 100 tons of crude oil is being loaded today outside the Strait of Hormuz”. “This shows the US sanctions (on Iran) have failed”, he added.
According to officials, the new facility on the Makran coast is equipped with three pipelines, can export heavy crude, light crude, and gas condensate.
According to Bijan ZANGANEH the Iranian Oil Minister, It is the first time in the 110-year history of Iran’s oil industry that oil exports will take place outside the Strait of Hormuz.
Nearly a third of world’s oil trade goes through this volatile channel, with shipments moving from the oil-rich Middle East to Asia, Europe, North America and beyond.
Iran is the fourth biggest crude producer within the Organization of the Petroleum Exporting Countries (OPEC).
Chris MIDGLEY analyst at S&P Global Platts said that “The fact it is opening (the Jask terminal) now could be a signal to the market that Iran can ramp up quickly once sanctions are removed.
This article was edited using the data from the Aljazeera.com, Cnbc.com, Thearabweekly.com, Asianews.it, Aa.com.tr and, Presstv.ir.