Texas Oil Tycoon Plans Rp80 Trillion Refinery to Bypass Iran Blockade
A Texas-based oil tycoon in the United States is planning a US$5 billion refinery construction project, equivalent to around Rp80 trillion. The strategic move is intended to avoid Iran’s blockade of the Strait of Hormuz, which has long served as a vital artery for global energy trade.
Marc Gunderson, founder of MWG Enterprises, has partnered with two Middle Eastern investment funds to develop the new terminal. The project is expected to reduce dependence on oil exports from the Persian Gulf passing through the Iran-controlled waterway.
Three potential sites in the Gulf of Oman have been shortlisted as candidates for the refinery’s construction. Situated outside the Strait of Hormuz, tankers using the facility would no longer need to pass through the narrow chokepoint that has frequently become a flashpoint of conflict.
The plan emerged amid rising tensions after Iran effectively closed the main trade route following air strikes by the United States and Israel in February. The closure triggered a surge in global oil and gas prices. On Wednesday local time, oil prices rose 4 per cent to US$88 per barrel as a result of the escalating conflict in the region.
The refinery project is being developed by Mera Oil, a joint venture between Gunderson’s MWG, Saudi Arabia’s AHQ, and the Patel Family Office. Although an official location has yet to be announced, leading candidates include Fujairah in the United Arab Emirates or Sohar in Oman.
Both countries are members of the Gulf Cooperation Council (GCC). The facility is to be designed as an export hub for all GCC members, including Kuwait, Bahrain, and Qatar. With a refining capacity of around 200,000 barrels per day, the facility will also function as a crude oil export terminal to guarantee supplies to buyers in Asia and Europe during regional conflicts.
The security situation in the Middle East continues to heat up after the United States and Saudi Arabia launched strikes against Iran-backed groups in Iraq on Wednesday (29/7). The strikes were in retaliation for attacks by unmanned aircraft on Saudi oil facilities.
Meanwhile, Tehran rejected Oman’s proposal for joint regional management of the Strait of Hormuz. The refusal has dashed hopes of a diplomatic resolution to the deadlock over the trade route that has been disrupted for months.
UBS analyst Giovanni Staunovo noted that repeated military strikes and Iran’s insistence on controlling shipping activity in the Strait of Hormuz continue to exert upward pressure on global oil prices.