Malaysia Says Iranian Oil Transfers Near Its Waters Exploit Maritime Loophole
Malaysia’s maritime agency has accused Iranian-linked tankers of exploiting “jurisdictional gaps” to conduct ship-to-ship transfers of sanctioned oil near its waters, rejecting allegations that authorities ignored a long-running trade allowing Iran to evade US sanctions.
The Eastern Outer Port Limits (EOPL) area in the South China Sea, about 70 km off Malaysia’s southern Johor state, has become a key hub for ship-to-ship transfers involving Iran’s “shadow fleet” – aging tankers that often operate with disabled tracking systems, false identities, and opaque ownership structures to conceal the origins of crude bound largely for China.
US Officials Warn of Iranian Oil Exports Relying Heavily on Service Providers
US officials have previously said Iranian oil exports rely heavily on service providers and ship-to-ship transfers operating near Malaysian waters. According to United Against Nuclear Iran (UANI), there have been 42 ship-to-ship transfers of Iranian oil conducted in the EOPL area since February 28, when the US and Israel attacked Iran, starting a war in the Middle East.
Malaysia’s Maritime Agency Rejects Allegations of Inaction
Malaysian Maritime Enforcement Agency Director-General Mohamad Rosli Abdullah said the transfers are often done outside the country’s territorial waters and in remote areas beyond radar coverage, especially in locations near maritime boundaries or international shipping routes. “The selection of such locations is intended to exploit jurisdictional gaps and limit direct enforcement action by local authorities,” he told The Associated Press.
UANI Warns Malaysia is Becoming a Facilitator Rather than Merely a Transit Point
Senior UANI adviser Charlie Brown warned that Malaysia is becoming “a facilitator rather than merely a transit point” for illicit activity. He said, “Because of Malaysia’s inaction, it is facilitating this business model by Iran and China and dark fleet actors.”
Malaysian Maritime Agency Says Lack of Real-Time Intelligence-Sharing Hampers Effective Action
The UANI allegations “do not align with the actual situation on the ground and do not reflect the operational realities of maritime enforcement conducted by the MMEA,” said Mohamad Rosli Abdullah. He added that the lack of real-time intelligence-sharing among domestic and international agencies also hampers effective action.
Clandestine High-Seas Transfers from Iranian-Linked Tankers Persist
Clandestine high-seas transfers from Iranian-linked tankers have persisted for years, allowing Tehran to sell its crude while offering buyers plausible deniability about the oil’s source. While not illegal, Malaysia discourages unsanctioned transfers outside designated areas, where such operations can be supervised, as they greatly increase the likelihood of a spill, involve aging vessels, and are carried out far from ports where mistakes could be more easily contained.
As of Tuesday, two dozen Iranian-linked tankers tracked by UANI were anchored or loitering near the EOPL area used for transfers off Johor, though it was not clear how many had sailed before the US blockade began.
Original Article: Malaysia says Iranian oil transfers near its waters exploit a maritime loophole | Arab News — Arabnews