Iran VLCC unloads fuel oil into FSU off Malaysia as Tehran seeks alternative storages

October 10, 2012

Dateline 2012-09-19:

An Iranian tanker has discharged 270,000 mt of fuel oil into a floating storage unit at Malaysia’s Tanjung Pelepas port this week, barely two weeks after another Iranian ship unloaded crude into an FSU near Labuan Island, off East Malaysia’s Sabah state, industry sources said Wednesday.

With international sanctions imposed on Tehran limiting its usual export outlets, the Islamic Republic is seeking to park its oil elsewhere so as to evade the shipping insurance ban imposed on international commercial vessels calling at Iranian ports to load oil.

By moving its oil to storages outside Iran, the country is also trying to free up its tankers so that these vessels could be used for delivering cargoes to its customers as well as store the crude it produces.

A shipping source with knowledge of the matter said, the Pioneer, a 2007-built VLCC owned by the National Iranian Tanker Company and previously known as Hadi, had discharged Monday nearly 270,000 mt of fuel oil into the Hercules, a VLCC converted into a floating storage unit, off Malaysia’s southern state of Johor.