PIRATES DIVERT SAUDI OIL SHIPMENT DESTINED FOR US

S E C R E T SECTION 01 OF 02 RIYADH 001716 NOFORN SIPDIS DHAHRAN SENDS, STATE FOR NEA/ARP E.O. 12958: DECL: 11/17/2018 TAGS: ENRG EPET EWWT PHSA PINS PTER SUBJECT: PIRATES DIVERT SAUDI OIL SHIPMENT DESTINED FOR US Classified By: CG Joseph Kenny for reasons 1.4 (b),(d) ¶1. (S/NF) Summary: Saudi Aramco officials confirmed with Consulate General Dhahran that one of their ultra-large crude carriers destined for the U.S., carrying more than 2 million barrels of crude oil, was captured by Somali pirates approximately 450 kilometers off the Kenyan coast. The crew of 25 people includes one Saudi, one Pole, two British, Croatian, and majority Filipino nationals; no Americans are aboard. One senior Aramco official said that future shipments of oil to the U.S. traveling in these waters will have to go even further out to sea to avoid pirate hijackings. This will adversely impact shipping costs and time. End summary. -------------- Somali Pirates Hijack Saudi Oil Tanker -------------- ¶2. (S/NF) A senior vice president at Saudi Aramco has confirmed that a Vela International Marine Limited (a wholly-owned subsidiary of Saudi Aramco) very-large crude carrier has been hijacked by Somali pirates. The hijacking occurred a little before noon on Nov 15, but Aramco purposely kept it close hold from the media. The source said that the vessel contains approximately 2.5 million barrels of crude oil, representing nearly a quarter of Saudi's total daily production. The ship was en route to the U.S. and was captured more than 450 miles off the coast of Kenya. There are 25 crew members, including one Saudi, one Pole, two British, Croatian, and majority Filipino. Aramco sources confirm that no Americans are aboard. When the pirates commandeered the oil tanker, they told the crew that they did not want to hurt them and were only interested in collecting ransom money. Vela International has contracted a UK firm to negotiate with the pirates and Aramco plans to pay an undetermined ransom. ¶3. (S/NF) A senior Aramco official said that the Somali pirates had hijacked an Emirate-flagged ship only a few days before and used this ship to inconspicuously approach the Aramco vessel. Another senior Aramco contact said that they have been tracking the movement of the oil tanker at Aramco's OSPAS (Oil Supply Planning and Scheduling) center, which is Aramco's high-tech computer nerve center that monitors real time movements of all Vela International tankers. (Note. Several officers from Consulate General Dhahran and Embassy Riyadh were conducting a tour of the highly restricted OSPAS center with the Consul General on the morning of Nov 15, hours before the hijacking. Aramco even showed us the locations of all Vela ships worldwide on an electronic map at that point in time. End note.) He estimated that the tanker will likely arrive to a Somali port by the end of day on Tuesday, Nov 18. -------------- -- Saudi Oil Shipments to the U.S. May Take Longer -------------- -- ¶4. (S/NF) A well-placed Aramco source said that Vela International had recently raised their concerns of increased pirate activity through their main shipping routes to the U.S. around the Horn of Africa. He said that Saudi Aramco had sent a letter to the Ministry of Petroleum and Mineral Resources about Vela International's concerns the day before the ship was hijacked. He believes that the only way the pirates could strike a ship so far out to sea is with "connections" and intelligence. He would not elaborate on these comments. A Senior VP at Aramco said that all of their oil shipensdestined for the U.S. travel through these shipping routes. He went on to say that their oil tankers will now have to go out further off the coast, adding an extra two days on average to shipping time to elude the pirates. This will increase the final cost for oil deliveries to the U.S. ¶5. (S/NF) Comment: It appears that Vela International and Saudi Aramco have been monitoring the increasing pirate activity around the Horn of Africa for some time. Therefore, we assess that the Aramco Senior Vice President's comments about plans to lengthen transport routes (and thus increase costs) for oil shipments to the U.S. are credible. Perhaps of more concern is the apparent capacity of the pirates to acquire intelligence on Vela International tanker movements and locations. This incident may lead to some internal security reviews for the Saudi oil giant. End comment. RIYADH 00001716 002 OF 002 (Approved: JKENNY) FRAKER