Oil Matters: Iran Is Thinking of Oil Terminal Outside the Arabian/Persian Gulf

Most of Iran's ability to get oil and gas products to the world outside the Arabian/Persian Gulf can be blockaded by putting a "stopper" in the entrances to the sea line of communication chokepoint that is the Strait of Hormuz. That "stopper" could be naval forces or mines or air power sufficient to threaten shipping trying to leave the A/P Gulf.

To an extent, the great worry to many of those outside of Iran who rely on shipments of oil and gas from the area has been that Iran might place its own cork in the mouth of the Gulf and cut off vital supplies, creating an international energy shortage and chaos in energy markets.

Other oil and gas producing states in the A/P Gulf have taken steps to reduce the risk of economic harm caused by Iranian action by developing alternative paths (by which I mean pipelines) to carry products away from the Gulf and the Strait of Hormuz. See the nearby map of such alternatives. Click on it to enlarge it.

Iran's potential to close the Strait of Hormuz is a double-edged sword, however, because a truly effective Iranian cork (perhaps using mines) in the Strait of Hormuz might also hobble the Iranian oil and gas export business which is also dependent on an open Strait. This limitation affects the ability of Iran to apply "energy supply" leverage on the world to get what it wants.

This Iranian dependency on an open Strait also constitutes a powerful strategic lever against the Iranian government when international disputes arise. Due to the alternative export routes developed by its neighbors and that are currently unavailable to Iran, it is possible that through - a blockade or other action closing the Strait to it - Iran could be boxed in the Gulf with oil and gas but no way to get it to market. No sales of such products could wreak havoc on the economy of Iran. A Iranian economy that gets bad enough could lead to internal strife in Iran and an overthrow of the present "republic."

Recognizing this problem, Iran is pondering a way to build itself a way out of this "box." One possibility is to set up an oil and gas port outside of the chokepoint Strait of Hormuz. The Tehran Times reports on just such a plan, in "Iran to invest $2.5b to build oil terminal at Sea of Oman port" :

Iran is planning to invest $2.5 billion to build a new crude oil export terminal at Jask Port on the Sea of Oman, bypassing the strategic Strait of Hormuz, the only way in and out of the Persian Gulf, the managing director of the Iran Oil Terminals Company announced on Saturday.

Most of Iran’s exports are funneled through the big terminal on Kharg Island in the northern Persian Gulf, then shipped southward in supertankers through the Strait of Hormuz, the Mehr News Agency quoted IOTC Managing Director Pirouz Mousavi as saying.

Iran also plans to lay a pipeline running from the Caspian Sea in the north to Jask, Mousavi added.

An older look at Iran's oil and gas infrastructure (2004)

Since a large number of joint oil and gas fields are located in the Persian Gulf, such a terminal will help the country expedite oil storage and export operations, he stated.

The Jask oil terminal will be comprised of storage facilities with a total capacity of 20 million barrels, loading and unloading docks, as well as onshore and offshore facilities, Mousavi said.

Iranian President Hassan Rouhani said in a meeting with domestic researchers in Tehran on Saturday that the diversification of oil export routes is one of the most strategic policies of his administration.


Mohsen Qamsari, the deputy director for international affairs of the National Iranian Oil Company, recently said that Iran is exporting an average of one million barrels of oil per day based on the November 2013 interim nuclear deal with the 5+1 group (the United States, Britain, France, Russia, China, and Germany).

Under the deal, the six countries undertook to provide Iran with some sanctions relief in exchange for Iran agreeing to limit certain aspects of its nuclear activities.

The two sides agreed to extend the nuclear talks until November 24, with a view to achieving a permanent accord.

Iran produced 2.762 million barrels of oil per day in July, the Organization of Petroleum Exporting Countries (OPEC) said in its latest report. (emphasis added)

Bandar-e-Jask Area

So, Iran is sitting on a million+ barrels of oil that it can't legally export under its agreement in the interim nuclear deal.

It needs an alternative path for its oil and gas. It has a small port at Jask on the Gulf of Oman - so . . . it has now floated a plan to enlarge that port and get an alternative out of the Gulf.

The arrow on the nearby map points to Jask.

Jask is also home, since 2008, to an Iranian naval base which it has asserted gives it the ability control the Strait of Hormuz:

"We are creating a new defence front in the region, thinking of a non-regional enemy," Adm Sayyari told state run Iranian radio.

"In this region we are capable of preventing the entry of any kind of enemy into the strategic Persian Gulf if need be," he said.

Is this proposed oil port real? If so, is it a sound and smart strategic plan or a bargaining chip for the nuclear talks? Or both?

Persian Gulf: USNS Rappahannock Fires after Vessel ignores warnings

USNS Rappahannock Fires after Vessel ignores warnings:

An embarked security team aboard a U.S. Navy vessel fired upon a small motor vessel after it disregarded warnings and rapidly approached the U.S. ship near Jebel Ali, United Arab Emirates today.

In accordance with Navy force protection procedures, the sailors on the USNS Rappahannock (T-AO 204) used a series of non-lethal, preplanned responses to warn the vessel before resorting to lethal force.

Circled area includes Jebel Ali

The U.S. crew repeatedly attempted to warn the vessel's operators to turn away from their deliberate approach. When those efforts failed to deter the approaching vessel, the security team on the Rappahannock fired rounds from a .50-caliber machine gun.

The incident is under investigation.

UPDATE: Al Jazeera report:

A US navy vessel has fired on an approaching motor boat off the coast of the United Arab Emirates, killing one person and injuring three others, reports said.

Lieutenant Greg Raelson, a spokesman for the navy's Bahrain-based 5th Fleet, said on Monday that sailors aboard the USNS Rappahannock opened fire on the boat after it ignored warnings.

"US ships have an inherent right to self defense against potential threats... The safety of our vessels and our personnel is of the utmost priority," he told Al Jazeera in an email response to a query.

A US consular official in Dubai confirmed the incident, telling the Associated Press that one person was killed and three others injured.

***
Dozens of police and other Emirati officials crowded around the boat after it docked after the incident in a small Dubai port used by fishermen and sailors. The boat was removed from the port shortly afterward.

Rescue workers were seen carrying one person in a body bag off the white-hulled boat and placing it in an ambulance as fishermen looked on, AP reported.

The boat appeared to be a civilian vessel about 9 meters long and powered by three outboard motors.

Similar boats are used for fishing in the region, though Iran's Revolutionary Guard also employs relatively small, fast-moving craft in the Gulf.

UPDATE2: A timeline from the U.S. Navy:

The U.S. Navy and the Persian Gulf: Ramping up slowly

Iran rattles sabers and the U.S. Navy does a slow ramp up. L.A. Times reports, "Navy says it will add ships to Persian Gulf amid Iran threats":

MHC Coastal Minehunter

The U.S. Navy is upgrading its defensive and offensive capabilities in the Persian Gulf to counter threats from Iran to seize the Strait of Hormuz and block the flow of oil, the chief of naval operations said Friday.

MH-53E Mine-sweeping helicopter

Adm. Jonathan W. Greenert told reporters in Washington that the Navy will add four more mine-sweeping ships and four more CH-53 Sea Stallion helicopters with mine-detection capability. The Navy is also sending more underwater unmanned mine-neutralization units to the region.

Cyclone-class Coastal Patrol ship

Greenert said he plans to assign more patrol craft to the gulf, possibly armed with Mark 38 Gatling guns. The same kind of guns might be placed on ships that provide protection for U.S. aircraft carriers or perhaps on the carriers themselves.

U.S. ships have excellent long-range defenses but could use weapons for closer combat, Greenert said.

"It’s like being in an alley with a rifle and maybe what you need is a sawed-off shotgun," he said.

One of the Big Dogs at Sea

The Iranians have boasted that they could "swarm" large U.S. ships with their smaller, fast-moving craft. They have also reportedly been laying mines along their coastline.

My guess, which is exactly that, is that the mine-sweeping stuff is for cleaning up the mess after the "AirSea Battle Concept (ASBC) (modified)"  gets a test run. There is almost no better geographic area to do a little joint air-sea work out.

Or, if required to bust some sort of Iranian attempt to close the Strait of Hormuz in an effort to effect access denial to the Persian Gulf.

This is no rush to war, but a sensible response to the known capabilities of the Iranian forces.

Anti-swarm at sea? SEAD, then kill the swarms from the air. Have we got enought A-10's? See here. Our "swarm" is better than theirs. Or, in a few words:"Find 'em, Blind 'em, Kill 'em" Use all the tools in the box.

U.S. Coast Guard's Turn to Rescue Iranian Sailors in Distress

If you didn't know the U.S. Coast Guard was sending ships out to the Indian Ocean area, well, then this will be a surprise for you - the Coast Guard rescues Iranian mariners in Persian Gulf:

Distress Iranian Dhow

 The Coast Guard Cutter Monomoy, assigned to Commander, Task Force 55, rendered aid to six Iranian mariners who were aboard a distressed vessel in the North Arabian Gulf Tuesday.

USCGC Monomoy (Island Class Cutter)

At approximately 3 a.m. local time, Monomoy was operating in the area when it was hailed by flares and flashlights from the Iranian cargo dhow, Ya-Hussayn. The dhow’s master requested assistance from Monomoy indicating the engine room was flooding and deemed not seaworthy.

Monomoy immediately launched their small boat and approached the Ya-Hussayn. Two persons were rescued from the vessel and four from a life raft tied off to the dhow’s stern.

Grateful Rescued Sailor

The six Iranian mariners were transferred to Monomoy and were provided water, blankets and halal meals. Halal meals are in accordance with Islamic law and are stored aboard U.S. Coast Guard ships to provide to Muslim mariners in distress.

An emergency medical technician from Monomoy treated an injured Ya-Hussayn crew member. Fortunately, his injuries were not serious and there was no requirement for him to be medically evacuated.

***

Turnover to the Iranian Coast Guard

Later in the day, the six mariners were transferred by smallboat from Monomoy to the Iranian Coast Guard vessel Naji 7.

The captain of the Naji 7, via translator, said, “Sends his regards and thanks to our Captain and all crewmembers for assisting, and taking care of the Iranian sailors. Wishes us the best, and thanks us for our cooperation.”

Sailors helping sailors. Been that way a long time.

All photos by U.S. Navy except for picture of the cutter Monomoy which is a U.S. Coast Guard photo.

Breaking: Reported Attack on Merchant Ship in Northern Arabian/Persian Gulf

Unconfirmed early report of an attack on a merchant ship in the the NAG/Northern Persian Gulf:

Merchant Vessel attacked in position 2941N 04840E. DTG 083030LT Aug10. Vessels are warned that if passing within 100nm of this area they are to exercise extreme caution.

That's up near Iraq if I plot it correctly.

More details as I get them.

UPDATE: Sea robbers? Yes, if the attacks described here are the same as the above (again, unconfirmed):

Gunmen robbed the crews of four ships anchored off Iraq's southern oil hub Basra last week in Iraqi regional waters patrolled by the U.S. Navy, a Navy official said on Sunday.

The attackers targeted the Antigua-flagged Arminia, North Korea's Crystal Wave, Syria's Sana Star and the American ship Sagamore last Sunday and took personal belongings from the crews, Lieutenant John Fage of the U.S. Navy's Fifth Fleet said.
***
The ship robberies took place about 145 km (90 miles) from the port at Basra, one of Iraq's largest cities and the heart of the oil industry.

Iraq is counting on oil sales, which provide about 95 percent of federal revenues, to supply the billions of dollars needed to rebuild after years of war, international sanctions and economic decline.

The attacks did not qualify as piracy under the U.N. Convention on the Law of the Sea because they took place in Iraqi regional waters and not on the high seas.

Iran: Military Sea Drills

Iran reports on its "Great Prophet 5" war game wrapping up in the Persian Gulf waters off its coast.

The drills reveal that Iran's sea-side defense is built around a combination of missiles, mines and swarm attack small boats, including an alleged missile firing remotely controlled "sonar-evading" boat as set out in IRGC unveils homemade vessel:

Iran's Islamic Revolution Guards Corps (IRGC) has unveiled a homemade sonar-evading vessel dubbed Ya Mahdi in the initial phase of a new Persian Gulf military drill.

“The domestically-made vessel that carries rockets with powerful destructive capability shows Iran's determined military strength in establishing security in the Persian Gulf,” IRGC's naval commander Ali Reza Tang-siri said Thursday on the first day of the three-day military drill code-named 'The Great Prophet 5'.

High-intensity rockets launched by remote-controlled Ya Mahdi vessels are able to destroy any targets on water surface, added the top commander, quoted by IRNA.

Over 300 vessels equipped with torpedo and guided-missiles are taking part in the massive naval maneuvers that coincide with the 31st anniversary of IRGC's formation.

Iran asserts its forces can cover the entirety of the Persian Gulf (see here). The Gulf is about 600 miles long and, at most, a couple of hundred miles wide. Of course, Iran cannot claim ownership of the entire Gulf, since it shares it with Iraq, Kuwait, Saudi Arabia, Bahrain, Qatar and the UAE.

Exercises included mine laying and other exercises as set out here:

The Islamic Revolution Guards Corps (IRGC) has wrapped up the third phase of a major military exercise in the Persian Gulf and the Strait of Hormuz after the US threatened Iran with a nuclear attack.

Codenamed the 'Great Prophet 5', the massive air, land and naval maneuvers kicked off on Saturday with the main aim of preserving the security of the region.

Phase three of the war games carried out on Saturday focused on defending the Persian Gulf coasts and islands, featuring anti-heliborne attacks and asymmetrical war tactics.

Missile tests are included in the festivities:

Iran's Islamic Revolution Guards Corps (IRGC) has announced plans to test-fire four domestically-made missiles at the fourth stage of its ongoing military maneuvers in the Persian Gulf.

Speaking to reporters on Saturday, Commander of the IRGC's naval forces Rear Admiral Morteza Saffari said four Iranian-manufactured surface-to-sea missiles were selected for a test launch on Sunday.

Iranian “defense experts have upgraded and improved the power and range of the missiles, and we will witness their capabilities in the new phase of the maneuvers,” Fars News Agency quoted Saffari as saying.

The senior commander identified one of the missiles as Nasr — a short-range cruise missile that can be launched from both inland bases and military vessels.

Earlier in the day, IRGC Air Force Commander Amir Ali Hajizadeh announced that Iran's 'stealth' drone, Pehpad, was scheduled to become operational in the second half of this year.

Commander Hajizadeh added that the radar-evading unmanned aerial vehicle, which is capable of bombing and conducting reconnaissance missions, had played a successful back-up role in the ongoing military drills.

Naturally, all of this is done in the name of peace. In the meantime, the IRGC has thrown its weight around by stopping foreign-flagged merchant ships in the Strait of Hormuz for "environmental inspection" as set out here:

The Islamic Revolution Guard Corps' naval patrol units have stopped an Italian and a French vessel in the Strait of Hormuz and inspected them.

The two vessels were inspected by the IRGC forces during a military maneuver on Friday for verification that they complied with environmental regulations.

The vessels were allowed to continue sailing after confirmation that they had not breached any regulations, the Islamic Republic News Agency (IRNA) reported.

The IRGC has been holding the third day of a major military exercise dubbed 'Great Prophet 5' in the Persian Gulf and the Strait of Hormuz.

According to some reports, the Iranian NASR missile is a version of the Chinese C-704 anti-ship missile and China has opened a C-704 plant in Iran:

China inaugurated a missile plan in Iran last month, even as the United States and its allies were pressing Beijing to support a new round of tough economic sanctions on the Islamic Republic over its nuclear program, Jane's Defense Weekly reports.
***
The Nasr is identical to China's C-704 anti-ship missile, Hewson says. Iran's burgeoning defense industry, much of it controlled by the Islamic Revolutionary Guards Corps, has been producing Chinese-designed anti-ship missiles such as the C-801 since the early 1990s.

The C-704, developed by China Aerospace Group, targets ships of 1,000-4,000 tons displacement and is the equivalent of the U.S. AGM-119 anti-ship missile. With a range of 106 miles and a 240-pound warhead, the C-704 has a kill probability of 95.7 percent.

You might notice in the photo above the NASR comes with its very own box launcher, suitable for shipboard use and land launchers. You might enjoy this post from 4 years ago in Iran's radar evading missiles. As noted in this DefenseTech post you can get an unclassified intelligence estimate of Iran's military strength here (pdf). From which this highlight:

Coastal defense cruise missiles (CDCMs) are an important layer in Iran’s defense of the Persian Gulf and Strait of Hormuz. Iran can attack targeted ships with anti-ship cruise missiles (ASCMs) from its own shores, islands, and oil platforms using relatively small mobile launchers.
The C801/802 is Iran’s primary CDCM, first imported from China in 1995. It is capable of engaging targets at a range of six nautical miles, and has greater accuracy, a lower cruising altitude, and a faster set-up time than the Seersucker missile Iran used during the Iran-Iraq War. The C801/802 allows Iran to target any point within the Strait of Hormuz and much of the Persian Gulf and the Gulf of Oman. Iran has worked with China to develop shorter range missiles, including the C701, for deployment in narrow geographic environments.

Iran can readily deploy its mobile CDCM launchers anywhere along its coast. These systems have auto control and radar homing guidance systems, and some can target using a remote air link. Iran’s objective is to overwhelm enemy air defenses with mobile CDCMs, combined with multiple rocket launchers (MRLs), coastal artillery, and ballistic missiles.

UPDATE: Iran to Mass-Produce New UAVs:

A senior commander of the Islamic Revolution Guards Corps (IRGC) announced on Sunday that his forces plan to mass-produce a new home-made Unmanned Aerial Vehicle (UAV) tested during the current wargames in the Persian Gulf and the Strait of Hormuz.

Speaking to reporters on the sidelines of the last stage of IRGC naval exercises, codenamed as Payambar-e Azam (The Great Messenger) 5 in Iran's southern waters today, Commander of the IRGC Aerospace Force Brigadier General Amir Ali Hajizadeh said that the new UAV (Pahpad) will be mass-produced in the near future.

"In addition to reconnaissance flight over the operation (battle) field, this kind of drone brings ease to battle command by transferring real-time data," Hajizadeh added.

Judging by the photo accompanying the article, one approach to "stealth" will be to make the Iranian drones look exactly like U.S. "Predator" drones, right down to the U.S. markings on the fuselage . . .that's so . . . asymmetric.

UPDATE2: Another article on Iran's homemade missiles here, this time with a photo of an older "Silkworm" type ASM on the beach.

Of course, that reminds of another post from 4 years ago setting out Silkworm range from Iran's shore here. As I recall, the pink areas are within Silkworm range in the lower Arabian Gulf. Sorry to say, all the source info for the map seems to have dried up.

Persian Gulf: Pirate Attack

Report of an attack on a dhow in the area between UAE and Bahrain in Ship with Indian crew attacked by pirates in the Gulf:

A traditional wooden ship with Indian crew sailing from the United Arab Emirates toward Bahrain was the target of the first act of sea piracy reported in Persian Gulf waters in years, according to details of the attack that emerged on Sunday.

The Bahraini dhow was intercepted on Friday night by another ship with an armed crew, security sources said.

The four pirates threatened the six-man Indian crew with guns and assaulted them before taking their cargo of fish and mobile phones, sources said. The crew members said they believed the pirates were Iranian, but their nationality could not be positively confirmed.

The Indian sailors were unharmed. They were released and arrived in a Bahraini port on Sunday.

The case represents the first time an act of piracy has been reported inside the Gulf since the issue of piracy again came to the forefront of international attention off the Somali coast in recent years.

UPDATE: Speaking of Iran, the Iranian Navy is making another deployment to the Arabian Sea to counteract pirates, as set out here. Meanwhile, the IRGC "navy" asserts "mission accomplished" as a result of its deployment to the Gulf of Aden:

The IRGC Navy completed its trans-regional mission to provide security for the Iranian commercial ships in the Gulf of Aden, brigadier general Ali Fadavi said in a ceremony to welcome the naval unit.

During the 107-day mission, tens of Iranian and non-Iranian ships safely sailed across the Gulf Aden and pirates never dared to approach any commercial ships, Fadavi added.

He said the IRGC used special tactics to foil the pirates'' attacks on the Iranian ships; he added the IRGC once again proved its capability in establishing security outside Iran’s geographical borders.

The general went on to say that the U.S. and European countries have failed to repel the piracy threat facing their vessels, while their advanced naval fleets are present in the region.

No, really. Protecting "tens" of ships. And allowing the sun to rise and set all at the same time. It's a wonder.