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Gulf players ditch Hormuz bypass



By Upstream staff 

Gulf oil producers have dropped a project to build an oil pipeline bypassing the Strait of Hormuz, saying the project was not feasible.

"It was agreed to accept the results of a study of the project to build a pipeline to transport Gulf oil in case the Strait of Hormuz is closed, (which) recommended that this project is not feasible," a statement distributed by delegates at a Gulf Co-operation Council oil ministers' meeting said.

Oil exporting Gulf states have been studying contingency plans in case of a blockage of shipping through the mouths of the Gulf and the Red Sea.

Iran's Supreme leader Ayatollah Ali Khamenei warned in June that oil exports from the Gulf region could be seriously endangered if Washington made a wrong move over Iran.

The strategic channel at the mouth of the Gulf is the world's most important waterway or choke point because of the huge volume of oil exported through it daily.


Wednesday, 08 November, 2006, 10:32 GMT  | last updated: Wednesday, 08 November, 2006, 10:32 GMT

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