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The U.S. uses an Iranian smuggling technique to sneak oil from the Gulf

The U.S. uses an Iranian smuggling technique to sneak oil from the Gulf
The U.S. uses an Iranian smuggling technique to sneak oil from the Gulf

US military has conducted a number of secretive oil transfers between ships to maintain Gulf energy exports. They have used aerial and water drones, as well as helicopters, in an operation that guides convoys to waiting tankers. The US military operation near the Strait Of Hormuz uses a technique that Iran has long used to avoid sanctions.

Eleven people with knowledge of the operation identified two specific locations for the oil transfer - one off Fujairah, in the United Arab Emirates, and the other off Sohar's port in Oman.

According to satellite images and shipping data, the transfer began in early May. At least 116 vessels were involved. Satellite imagery shows that as recently as Tuesday morning 12 pairs of ships were seen side by side in the Gulf of Oman. Eight of them off the coast of Sohar, Oman, and four near Fujairah. Images from last week show that on June 11, the activity peaked and 17 pairs of vessels were seen simultaneously transferring oil at both sites. Four sources, including an ex-U.S. official who was aware of the attack, said that the Apache helicopter shot down by Iran on the 9th, which sparked retaliatory U.S. bombings, played a role in the mission. Six pairs of tanker vessels were grouped together on satellite imagery in a small area near the port of Sohar, the day that the Apache helicopter was shot down.

Could not confirm the role of the Apache in the operation. A U.S. Defense official responded to questions by saying that no Central Command forces were involved in the offshore ship-toship oil transfer operations. U.S. officials confirmed that a drone boat rescued both crew members.

Previously, the Apache's involvement in the operation, the extent of the transfers and how they operate, as well as the Apache's role, had not been reported. Centcom was contacted by the White House. The Iranian government has not responded to inquiries about the transfer operation. These two locations, located in the Gulf of Oman, near the exit of Strait of Hormuz are very close to the borders drawn by the Persian Gulf Strait Authority. This is a new Iranian body established to manage the Hormuz Strait. The Islamic Revolutionary Guard Corps may use drones and missiles to attack ships that do not comply with Iran’s orders. Fujairah has experienced repeated Iranian attacks during this U.S. led operation. According to British maritime risk management company Vanguard, a "unknown projectile", which struck a tanker near the coast of Oman, hit 'this past weekend. Vanguard stated in a press release that the crew was safe, and the impact had caused some cargo leakage but not environmental damage. The statement did not say whether the tanker had been involved in a transfer from ship to ship. Iran's response to the U.S./Israeli conflict was to effectively close the Strait of Hormuz. This is where roughly a fifth of the world's oil consumption passes. This caused the largest global energy disruption in history, and sparked inflation all over the world. Ship-to-ship transfers are part of Trump?administration efforts to restore normal oil flow from the Gulf, even though they're risky and inefficient. Donald Trump, the U.S. president, said that Friday would be the reopening of Strait of Hormuz under a framework agreement with Iran announced earlier this week. Details are still vague. It was not possible to determine if the announced agreement had affected oil transfers. An investigation published on May 20 revealed that Iran had established its own system to guide ships through the Strait. This involved island checkpoints and diplomatic deals, as well as sometimes fees.

STAGGERED Departures and Waypoints

Eight sources confirmed that the U.S. Military is in full control of the American transfer operations, including the private security contractor involved with the transfers.

According to satellite imagery and one source, tankers are required to sail to a rendezvous point before reaching the strait. They then stagger their departures to be around 3,000-4,000 meters apart. Four sources claim that their transponders and lights have been dimmed.

One source said that the Americans "are obviously?watching" you at all times.

The oil transfer begins when the tankers pass through the Strait just beyond the zone Iran has designated as its own. Many of the ships are Very Large Crude Carriers (VLCCs). The oil transfers take anywhere between 24 to 40 hours. The VLCCs are then loaded and sail through the Strait.

This ship-to ship operation is possible because a few shippers are willing to navigate their vessels through this strait in order to deliver oil to waiting tankers despite the Iranian ban.

The operation is dangerous. Noam Raydan is a Washington Institute senior fellow who specializes on maritime risk. He reviewed the findings.

Iran has used the ship-to-ship method for years in order to avoid sanctions because it hides the source. Iran usually operates one pair of vessels at a given time to avoid detection, and also because its exports before the war were small. The U.S. led operation, which involves massive transfers, provides Gulf producers with better protection against Iranian retaliatory strikes so that they can move crude oil, condensate, and petroleum products to foreign buyers.

The review included more than 12 satellite images, taken between 2 May and 11 June. These showed ship-to-ship transfers that involved state-owned Gulf oil tanker fleets as well as international vessels receiving the?oil. LSEG and Kpler data on shipping reviewed by revealed that tankers in the region met up repeatedly during the same time period.

Based on imagery up to June 11, it is estimated that 90 million barrels or petroleum products have likely moved through the offshore system since early May.

Based on the tankers carrying capacity, the volumes are still low compared to pre-war levels of approximately 20 million barrels per day that were passed through the Strait.

Michael Froman wrote in a Friday note that "as the old rules are weakening, it is ironic that America now takes a page from the playbook used by China, Russia and North Korea. Their so-called dark fleets pioneered this technique precisely to evade U.S. sanctions and UN sanctions." He was referring the practice of sending vessels through the strait with no transponders. Trump made this comment in his comments on June 10, after the downing the Apache.

Six sources who had direct knowledge of the operations said that the U.S. supported the?participating ships through a combination aerial surveillance, compliance screening, and monitoring instead of naval escort. No evidence was found that U.S. personnel were directly involved with the transfers.

A review of shipping records shows that international tanker operators dominate the receiving side of the operation. Dynacom Tankers, a Greek company, has spoken of its attempts to find innovative ways to ship oil across the strait ever since the conflict began on February 28, 2008.

George Procopiou (founder of Dynacom) told the Capital Link Shipping Conference in Athens on June 1 that "freedom of navigation" is essential. No one can impose any tolls, or other burdens. He said, "We're here to serve and Greece has a tradition of breaking blocksades since ancient times." "I won't go into details, but the hints should be enough for you to get my meaning."

Dynacom has not responded to an immediate request for comment about the U.S. operations.

A maritime source said, however, that the new system poses?its own risk to their industry.

The source for maritime security said that there was a lack of reliable data. Transponders that communicate the location of ships are turned off and companies do not report through the usual reporting centers. This increases the risk of collisions between ships traveling at night without lights at speeds which make maneuvering difficult.

Four sources with knowledge of the arrangements have confirmed that operators seeking to access the system must undergo a compliance assessment process before they are allocated transit window. This process involves submitting information to the U.S. Navy’s Naval Cooperation and Guidance for Shipping Office in Bahrain.

Two preliminary documents of compliance reviewed by? Operators were required to provide geospatial track histories, beneficial ownership disclosures, cargo documentation, and be willing to allow cargo testing.

Upon approval, the participating vessels will be assigned transit windows and remain in touch with the U.S. Military Office in Bahrain during the entire voyage. According to the shipping records examined by, Emirati exports make up a significant portion of the U.S. transfers. According to six of the sources, UAE's national oil company ADNOC was among the most active participants.

Kuwait Oil Tanker Company is also involved in the transfers. TankerTrackers.com reports that 2.3 million barrels were siphoned off one of their ships on the coast of Sohar, June 6, which was one of the busiest transfer days. Five days later, the receiving ship Sea Ruby was seen off India's south-west coast, bound for China where cargo was to be discharged.

Requests for comments from the UAE government, ADNOC, and Kuwait Oil Tanker Company were not answered.

Raydan said, "I do not see a solution permanent to all this." "This is only a temporary fix in these exceptional times."

(source: Reuters)