Legal Aspects of Ship-to-Ship Operations in Crude Oil Trade

Document Type : ISI

Authors

1 Assistant Professor, Faculty of Law and Political Scienecs, University of Tehran, Tehran, Iran.

2 MA. in (Oil and Gas Law), Alborz Campus, University of Tehran, Tehran, Iran.

Abstract

Introduction
The ship-to-ship (STS) transfer operation, a relatively recent practice dating back less than a century, has become increasingly significant in the global oil trade. Over the past few decades, the STS transfer has drawn the attention of numerous actors in the oil and maritime industries, primarily due to its operational flexibility and economic advantages. The ability to transfer cargo ownership mid-sea, redirect shipments to alternative destinations, avoid congested or inadequate coastal terminals, and mitigate the environmental hazards associated with tanker collisions are among the key factors motivating this practice. While STS operations have legitimate commercial and logistical uses, they have also emerged as a strategic tool for certain states to bypass economic sanctions imposed by global powers. These states face economic sanctions from the United States, the European Union, and the United Nations, which severely limit their access to international markets and financial systems. In response, they have turned to innovative maritime tactics, most notably the STS transfer, to sustain crude oil exports and mitigate the adverse effects of sanctions on their economies. The present study aims to analyze the legal and operational dimensions of ship-to-ship transfer activities conducted by sanctioned states as a way to neutralize extraterritorial sanctions.
Method
This article utilizes a library-based study to gather information and identify existing challenges and cases, supplemented by analytical and descriptive methods in both Persian and English sources. The goal of this study is to provide solutions that enable oil and gas industry players to achieve more accurate and effective results in various aspects of this industry.
Conclusions
Given the concept and unique characteristics of ship-to-ship operations in the oil and petroleum products trade, the importance of these operations for industry players, namely exporting countries and major international oil companies is more apparent. However, what was predictable was the lack of international rules regarding the conduct of these operations in various maritime locations and the law governing them. This study shows that, in the current situation, the lack of transparency and a precise framework in ship-to-ship operations has led to disputes between governments and disruptions in international trade. If a solution is not found, the risk of damage to marine and environmental resources will increase even further. The findings indicate that ship-to-ship operations have become an essential means for sanctioned countries to maintain energy exports and reduce the impact of economic restrictions. However, the secretive execution of such operations raises serious legal and environmental concerns. While extraterritorial sanctions seek to promote compliance, they often contradict the principle of freedom of navigation under international law. Policymakers and international organizations must therefore strive for a cooperative approach that upholds both maritime security and the lawful freedom of navigation while addressing the root causes of sanctions and their global implications.
 
 
 

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Main Subjects

References

منابع
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Journal Of Researches Energy Law Studies
Volume 11, Issue 1
September 2025
Pages 121-144

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