Malaysian Waters Become Key Hub for Iranian Oil Transfers
Malaysia’s maritime agency has confirmed that Iranian-linked tankers are 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 U.S. sanctions.
The area in question is the Eastern Outer Port Limits (EOPL) in the South China Sea, approximately 70 kilometers off Johor’s coast. This location lies along one of the world’s busiest maritime trade routes and is about halfway between Iran and China, which buys around 90% of Iranian oil.
According to United Against Nuclear Iran (UANI), a U.S.-based advocacy group, there have been 42 ship-to-ship transfers of Iranian oil conducted in the EOPL area since February 28, when the U.S. and Israel attacked Iran, starting a war in the Middle East. UANI used satellite imagery to observe these operations.
Maritime Agency Clarifies Enforcement Actions
Malaysian Maritime Enforcement Agency Director-General Mohamad Rosli Abdullah emphasized that the transfers are often conducted outside Malaysia’s territorial waters and in remote areas beyond radar coverage, especially near maritime boundaries or international shipping routes. He stated that the selection of such locations is intended to exploit jurisdictional gaps and limit direct enforcement action by local authorities.
The agency director-general also highlighted the lack of real-time intelligence-sharing among domestic and international agencies as a hindrance to effective action. He emphasized that the MMEA’s operational realities do not align with UANI’s allegations, which he claimed “do not reflect the actual situation on the ground.”
Iranian Oil Flows Despite US Blockade
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. Although not illegal, Malaysia discourages unsanctioned transfers outside designated areas, where such operations can be supervised, as they greatly increase the likelihood of a spill and involve aging vessels.
Despite a U.S. blockade of Iranian ports that started in mid-April, UANI has tracked Iranian-linked tankers still operating, though it is unclear how many are now getting through. As of Tuesday, two dozen Iranian-linked tankers tracked by UANI were anchored or loitering near the EOPL area used for transfers off Johor, although it was not clear how many had sailed before the blockade began.
Enforcement and Regulation
UANI maintains that Malaysia could enforce environmental regulations for advance notification of ship-to-ship transfers, prevent Malaysian companies from providing support to ships involved, and require all ships to carry adequate insurance against accidents and oil spills. The MMEA director general emphasized that enforcement is conducted strictly under Malaysian law and relevant international conventions, and authorities have “never compromised nor provided any special treatment or privileges to any country.”
Original Article: Malaysia says Iranian oil transfers near its waters exploit a maritime loophole — Wsbradio