Iran has renewed its efforts to export oil from the Gulf of Oman as the key waterway of the Strait of Hormuz remains the centre of geopolitical tension.
The Opec member on Thursday officially restarted construction of the 1,000-km Goureh-Jask oil pipeline, Iranian president Hassan Rouhani said in a broadcast speech reported by various media outlets.
The project is designed to transport sour crude or condensate from the southern Bushehr province to Bandar-e-Jask, where 20 tanks each with a capacity of 500,000 barrels will be built.
“The ability to implement the huge national project for the construction of the Goureh-Jask oil pipeline from Bushehr province to Hormozgan province shows the capability of the Iranian nation, researchers and craftsmen,” Rouhani said.
According to Iranian officials, the country had invested $300m in the $1.1bn project before the construction was halted due to the US sanctions in 2018. A 440-km section of the pipeline has been completed.
"Experts of Iranian companies, following the sanctions of the enemies, have taken on the plan to produce oil pipelines to Jask,” Rouhani said.
Iran is aiming to complete the pipeline construction by March and export 1m barrels per day (bpd) of oil from Jask, the country’s main oil terminal on the Sea of Oman coast.
According to Rouhani, the project would allow Iran to continue oil exports should the Strait of Hormuz is closed due to geopolitical conflicts.
Since the US re-imposed sanctions on the Islamic republic in May 2018, tensions have been heightened in the chokepoint where 20% of the world’s oil passes through daily.
Iran has seized tankers passing in the southern Middle East Gulf for short periods in numerous occasions, with the 50,000-dwt MR tanker Stena Impero (built 2018) being the most notable case.
The country has also repeatedly threatened to shut the entry point of the Gulf if US sanctions block its oil exports, even though some analysts believe the possibility of such escalation remains low.
Kpler data showed Iranian exports of crude and condensate amounted to just 99,000 bpd last month, compared with 2.74m bpd in April 2018.
