SINGAPORE INPUT -- OIL SUPPLY VULNERABILITY

S E C R E T SECTION 01 OF 02 SINGAPORE 003118

SIPDIS

NOFORN

STATE FOR S/CT, EB/ESC/IEC, INR/EC, DS/ITA
STATE PASS OPEC

E.O. 12958: DECL: 10/24/2015
TAGS: EPET ETRD EWWT PTER PINR ASEC KHLS SN
SUBJECT: SINGAPORE INPUT -- OIL SUPPLY VULNERABILITY

REF: SECSTATE 182688

Classified By: Charge' d'Affaires Judith R. Fergin for Reason 1.4(d)


1. (S/NF) Post believes that the Government of Singapore
(GOS) is taking reasonable measures to ensure the physical
security of its oil refining complex on Jurong Island. GOS
officials consider terrorist threats the most likely source
of disruption to the supply of crude oil reaching Singapore
and of refined product destined for export markets.
Singapore's geography makes natural disasters such as
tsunamis, earthquakes or flooding unlikely. The GOS has a

SIPDIS
security framework in place to protect its oil refineries,
including scenario planning and monthly inter-agency security
exercises.


2. (S/NF) The following answers correspond to reftel
questions:

-- Have host governments completed vulnerability assessments
of the facilities listed below?

The GOS has completed a vulnerability assessment of the
Singapore refining complex, which is comprised of 80
petrochemicals and chemicals companies located on Jurong
Island. Deputy Prime Minister S. Jayakumar recently told the
media that security plans are always being reviewed and
enhanced, but existing measures are "working well." Minister
Jayakumar said Singapore "take(s) the best of precautions,
but must be prepared for the risk of terrorists somehow
breaking through."

-- What actions have they taken to reinforce protection and
harden vulnerable infrastructure to prevent terrorist attacks
or other disruption?

After 9/11, then-Deputy Prime Minister Tony Tan established a
framework to provide long-term protection to Jurong Island.
The framework includes monthly security exercises between
Singapore's police, military, and Civil Defense Forces. In
addition to government-led security enhancements, private
businesses are also working to make their facilities less
vulnerable to attack. A British Petroleum (BP)
representative told Embassy RSO that it requires all of its
facilities to operate at a medium threat security level since
9/11, to include: 24-hour security surveillance; strict
access control; and street-side barriers to deter vehicle
bomb attacks.

-- What would be the impact if one of these facilities
reduced or halted its output? (Posts are requested to
quantify this impact in barrels per day of output.)

Singapore reportedly is the world's third largest oil
refining center (according to the GOS),and produces 91.5%
(2004 average) of its 1.3 million barrels per day (bbl/d)
total crude oil refining capacity from three main refineries:
ExxonMobil (605,000 bbl/d); Shell (458,000 bbl/d); and
Singapore Refining Corporation (273,000 bbl/d). Singapore's
oil storage capacity is 110.3 million barrels.

-- Are there other facilities that are particularly
vulnerable?

A daily average of 10.3 million barrels of crude oil transit
the Singapore and Malacca Straits. Maritime piracy attacks
raise concerns that pirate tactics could be employed by
terrorists to hijack an oil tanker in these waters. A sunken
oil tanker in the Straits -- 1.5 miles wide at its most
narrow point and 82 feet deep at its most shallow point --
theoretically could block a sea-lane that carries 50% of the
world's crude oil trade. If the Malacca and Singapore
Straits were impassable, ships would be forced to travel an
additional 994 miles to reach their destinations, causing
shipping rates worldwide to rise. Hardest hit would be the
economies of China, Japan, South Korea, and Taiwan, primary
destinations for these energy shipments through the straits.
Further, Singapore is the world's largest bunkering (ship
refueling) port, so any interruption of that activity could
have substantial effects on global shipping.
FERGIN