OIL DEVELOPMENTS IN ISRAEL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001600030086-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 22
• Document Creation Date: December 22, 2016
• Document Release Date: October 25, 2011
• Sequence Number: 86
• Publication Date: June 1, 1970
• Content Type: IM

eclassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
DIRECTORATE OF
INTELLIGENCE
Intelligence Memorandum
Oil Developments In Israel
DOCUABEbT ~~RP99TRS BLANCH
~ NOT
n~sreor
Se
ER IM 70-86
June 1970
Copy No. 3 U
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31 :
IA-RDP85T00875R001600030086-4 . . ''
WARNING
This document contains information affecting the national
defense of the United States, within the meaning of Title
18, sections 793 and 794, of the US Code, as amended.
Its transmission or revelation of its contents to or re-
ceipt by an unauthorized person is prohibited by law.
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31 :
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31
CIA-RDP85T00875R001600030086-4 0.c't'jN.5 1
CENTRAL INTELLIGENCE AGENCY
Directorate of Intelligence
June 1970
INTELLIGENCE MEMORANDUM
Oil Developments In Israel
Introduction
About 99% of Israel's total supply of primary
energy is derived from oil and the bulk of its oil
supply is provided by outside suppliers. Few coun-
tries are willing to sell oil to Israel because
much of the Free World oil outside the United States
is under Arab control or influence. However, depen-
dence on imports has been reduced by he use of oil
from Occupied Sinai. This memorandum examines
Israel's oil supply and demand, reviews measures
taken to improve the Israeli oil position, and
speculates on the prospects for the use of the new
crude oil pipeline.
Oil Resources and Exploration
1. The only source of domestic oil in Israel
proper is the relatively small producing area made
up of the Helez, Beror, and Kokhav fields (see the
map). The oil from these fields is not particularly
suited to Israel's needs and reserves may be largely
exhausted by the mid-1980s. Although exploration
for oil has gone on since 1953, with little success,
new exploratory drilling is planned in the Mediter-
ranean Sea offshore from Ashdod, where a drilling
rig was located at the end of 1969, and near Netanya
and Haifa.
Note: This memorandum was produced solely by CIA.
It was prepared by the Office of Economic Research
and was coordinated with the Office of Current In-
teZZigence and the Office of National Estimates.
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31
CIA-RDP85T00875R001600030086-4
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31 :
t II =
ISRAEL
AND OCCUPIED TERRITORIES
Oil Facilities and Concessions
Intornatlonnl boundary
-- Armintlco boundary
'- - - Putatlvo median line
Suol
Carol
Al Qenldrah
~IAI Flydan
.olthnr ''
B(rrrlr
-LAlf4
REPUBLIC
n
.Nakhl
S 1,N A
Ab0 Zanimah
e~
;~ba Ruday.
Wad; Sidrr
Wadr van
I Bali'Im Befft'`~t r.
A''m#.h
?OUNOANT a9Pa000NTATION,I
32 NOT NtC[OOAIe1Ly AUTHONITATIVO
78115 4.70
r eNn?nrolh
Alulae
l~jtllkarm
1Qn1 gilyali?NSbutua t
AS Snl~
...__.:__
~rhlae f~
i'O D A;N ' MMAN
~~~a Jarich ~'
orUaa10
Ko&hav ~~
;Neloz I _Ilabrnn
``law pipe1'1a r}, f
Nagb
JORDAN
EIS
Al'Agabah
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31 :
CIA-RDP85T00875R001600030086-4
FACILITIES
Ollllald 101 Rallnory
Plpollno Storage
CONCESSIONS
Gulf of Suez Petroleum Company (OUPCO)
EgYptlon General Petroleum Company (EOPC)
Eastern Petroleum Company of Egypt (COPE)
Q Za 50 Was
0 I 2a 60 KIlometers
Iimaflla
UN
SECRET
Al Mtidavvwelel~
S A. U. D I
A R'?..AB .1
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31
CCIA-RDP85T00875R001600030086-4
^ SECRET
Sinai
2. Egypt had conducted exploratory work in the
land areas of the Sinai peninsula but the identified
deposits are small or the oil is of inferior quality.
Valuable discoveries were made, however, in two off-
shore areas in the Gulf of Suez -- the El Morgan and
Bala'im fields -- and prospects are favorable for
additional discoveries in the area. The El Morgan
deposit, which extends on both sides of the Gulf
median line, is now Egypt's largest producing field,
whereas the Bala'im deposit is now under Israeli
control.*
3. Since late 1967, Israel has claimed the
right, on the basis of its status as an occupying
power in the Sinai, to explore for oil in the east-
ern half of the Gulf of Suez and has awarded an oil
prospecting and operating concession to a British
subsidiary of a US firm. In February 1970, while
en route to the Gulf, a drilling rig owned by a
Canadian firm under contract to the British conces-
sionaire was sabotaged, presumably by Egyptian
agents at Dakar (Senegal). Following prolonged de-
lays in making repairs to the rig at Accra (Ghana)
and in negotiating insurance claims, the contract
was terminated in early June, apparently with the
approval, of Israel. Future plans of Israel and the
concessionaire are not known.
4. Elsewhere in the Sinai, Israel conducted
drilling operations in early 1969 off the northern
coast in the Mediterranean near Al'Arish. The drill-
ing was unsuccessful and the rig reportedly departed
the site in September 1969.
The Gulf of Suez Petroleum Company (GUPCO) has
held concession rights since 1963 to about three-
fourths of the Gulf of Suez, including the EZ Morgan
area. GUPCO is owned in equal shares by the Egyptian
General Petroleum Corp. (EGPC) and by Pan American
Oil Co., now Amoco (UAR), a subsidiary of Standard
Oil Co. of Indiana. The Baia'im deposit was devel-
oped by the Cie. OrientaZis des PetroZes d'Egypt
(COPE) which is owned in equal shares by EGPC and
the Italian International Egyptian Oil Co. (IEOC).
3 -
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31
CIA-RDP85T00875R001600030086-4
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
SECRET
Oil Production
5. Production from the Helez, Beror, and Kokhav
fields, known collectively as the Helez deposit, has
declined from the peak level of about 200,000 metric
tons in 1965 to about 100,000 tons in 1969, and may
level off at or near that level for the next few
years. Israeli production in recent years and the
declining share that production represented of domes-
tic demand are shown in the following tabulation:
Year
Metric Tons
Percent
of Demand
1965
201,600
7
1966
187,400
6
1967
135,000
4
1968
114,600
3
1969
100,000
2
6. Israeli production from Egyptian oilfields
in the Sinai is estimated to have been about 2 mil-
lion tons in 1969, and may increase to as much as
2.5 million tons in 1970. The offshore wells at
the Bala'im field, formerly operated by the Egyp-
tian-Italian consortium COPE,* account for almost
all of this Sinai production. Oil from this off-
shore field is similar in quality to a number of
other Middle East oils and is generally suitable
for Israel's needs. Oil from the onshore wells in
the Sinai, however, has certain undesirable qual-
ities that make it difficult to handle and refine,
- 4 -
SECRET
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
 eclassified in Part - Sanitized Copy Approved for Release 2011/10/31
k-RDP85T00875R001600030086-4 SECRET
Cl
and it does not yield the product mix desired by
Israel.* Because of these qualitative factors, as
well as high operating costs in the smaller fields,
Israel probably is not producing any significant
quantity of oil from onshore fields in the Sinai.
Estimated production in the Sinai in 1969 was less
than half the 1966 level (the last full year for
which reliable data are available) as shown in the
tabulation below:
Former
Operating
Company
Production
in 1966
(Thousand
Field Metric Tons)
COPT Bala'im (onshore)
Bala' im (offshore)
Abu Rudays
Sidri
Fayran
'Akmah
2,191
1., 892
129
61
17
12
EGPC 'Asal 107
El Sidr 85
Matarimah 12
Total 4,506
Refining
7. Israel's only refinery, located in the Bay
area of Haifa, had an estimated annual throughput
capacity of about 5.5 million tons in 1969. The
refinery was to be expanded through minor modifica-
tion to an ultimate capacity of 6 million tons for
1970. That capacity probably would be adequate for
Israel's domestic needs for most types of petroleum
products through 1972 and 1973 and also provide prod-
ucts for export. Imports of refined products are
The Bala'im onshore oil probably could be used by
Israel if blended with a lightweight crude oil, but
such blending crude is not known to be readily
available from non-Arab sources. Moreover, BaZa'im
crude is not readily exportable by Israel because of
its quality ar' )ecause title to the oil probably
would be in dispute.
- 5 -
eclassified in Part - Sanitized Copy Approved for Release 2011/10/31
 classified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
SECRET
limited to small quantities of aviation gasoline,
specialty products, and residual fuel oil.
8. A new refinery with an initial annual capac-
ity of 3.5 million tons reportedly is to be completed
in the vicinity of Ashdod by the end of 1972. This
plant is designed to serve the central and southern
areas of Israel as well as the growing needs of
Israel's chemical industry.
Petroleum Supply and Demand
9. Israel's total supply of petroleum in 1969
was about 5.7 million tons. Imports of crude oil
from Iran --.about 3.1 million tons -- accounted
for 54% of the total.* The 2 million tons of crude
oil from Sinai represented about 35% and domestic
production about 2%. In addition, Israel imported
an estimated 500,000 tons of petroleum products,
principally residual fuel oil, from Iran, Europe,
and the United States, and perhaps other sources.
10. The total supply in 1970 probably will be
about 6.3 million tons. All of the increase over
1969 will be in the form of crude oil, reflecting
Israel's additional pipeline and refining capacity.
Imports of products should decline to about 3)0,000
tons in 1970. Estimated oil supply and demand in
1969 and a forecast for 1970 are shown in Table 1.
11. Domestic consumption of petroleum in 1969
(excluding petroleum used or lost in refining) is
estimated to have been 4.2 million tons, including
about 90,000 tons consumed in Occupied areas.
Since 1968, consumption has been increasing about
10% each year and may reach about 4.7 million tons
in 1970. This assumes a continuation of rapid
economic growth in 1970 and no significant change
in the. level of Israeli-Arab hostilities. Detailed
estimates of Israeli petroleum consumption by prod-
uct for 1966-70 are given in Table 2.
* An additional 500,000 tons of Iranian crude, des-
tined for Romania, was delivered to Israel for move-
ment by pipeline to the Mediterranean. Israel prob-
ably acted only as the custodian or carrier and the
crude oil presumably was not re f Zected in its, foreign
trade accounts.
- 6 -
SECRET
eclassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
SECRET
Israel:
Estimated Petroleum Supply and Demand
Thousand Metric Tons-
1969
1970
Supply
5,700
6,300
Crude oil from:
5,200
6,000 a
Israel
100
100
Sinai
2,000
2,000 to 2,500
Iran
3,100
3,400 to 3,900
Petroleum products imports
500
300
Demand
Crude oil to:
5,200
6,000
Refinery
5,100
6,000
Stocks
100
--
Petroleum products b/
5,600
6,300
Domestic consumption
4,500
5,000
(including refinery
fuel and losses)
(255)
(330)
Available for export
and/or addition to
stocks
1,100
1,300
a. Total crude of supply is estimated on the basis
of the refinery capacity expected to be available
for the whole year 1970. The quantity of crude oil
to be imported from Iran will be a function of the
quantity acquired from Sinai.
b. Represents the sum of the crude oil charged to
the refinery and imports of products. Of the crude
refined., about 95% was avaiZabZe for shipment from
the refinery and the remainder was consumed as re-
finery fuel or Zost in processing.
^ SECRET
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
Table 2
Israel: Estimated Consumption of Petroleum Products a/
Quantities in Thousand Metric To
ns
1966
1967
1968
1969
1
970
Quantity
Percent
Quantity
Percent
Quantit
P
y
ercent
Quantity
Percent
Quantity
Percent
Gasoline
103.4
3.4
97.3
3.1
104.1
2.7
115
2.7
126
2.7
.0
Motor
i
io
319.5
10.5
337.7
10.7
397.2
10.3
437
10
3
481
10
3
I
Av
at
n
8.5
0.3
17.0
0.5
12.6
0.3
14
.
0.3
15
.
0.3
CA
Kerosine
225.0
7.4
271.8
8.6
374.5
9.7
-412
9.7
453
9.7
Distillate fuel oils
542.1
17.8
594.7
18.9
729.4
18.9
802
18.9
882
18.9
Diesel fuel oil
26.9
0.9
35.0
1.1
43.8
1.1
48
1.1
53
1.1
Residual-fuel oil
1,698.6
55.6
1,646.4
52.5
1,995.5
51.7
2,195
51.7
2,415
51.7
Asphalt and other residuals
73.4
2.4 -
83.7
2.7
114.7
3.0
126
3.0
139
3.0
Lubricants and other
53.0
1.7
60.0
1.9
86.9
2.3
96
2.3
106
2.3
Total.
E i
3,050.4
100.0
3,143.6
100.0
3,858.7
100.0
4,245
100.0
4,670
100.0
a.
st
mates for years 1966-68 were derived from published data. Estimates for 1969 and 1970 reflect annual increases of
109; data for 1970 assume no change from 1969 in the level of activity cavRed by Arab-Israeli hostilities.
b. Includes kerosine-type aircraft turbine (jet) fuel.
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31 :
CIA-RDP85TOO875ROO1600030086-4 SECRET
Petroleum Trade
12. Israel exports petroleum distillate products;
in 1969 these exports probably were about 800,000
tons, somewhat less than in 1968. West Germany and
the United Kingdom were the largest markets, import-
ing 470,000 tons and 190,000 tons, respectively;
most of the remainder probably went to other coun-
tries in Western Europe. The exportable surplus of
products in 1970 may be slightly greater than in
1969, as the increase in refinery throughput should
exceed the expected increase in demand.
13. In terms of foreign exchange costs, Israel's
net expenditures for petroleum in 1969 amounted to
$28 million, down from $42 million in 1966. Most
of the drop reflects the savings realized from the
availability of Sinai production which was valued
at $25 million in 1969. Net expenditures for petro-
leum in 1970 will also be about $28 million. Esti-
mates of Israel's petroleum balance of trade are
presented in value terms in Table 3 and in quantity
terms in Table 4.
Crude oil Pipelines
14. Following the Arab-Israeli hostilities in
1956, the Suez Canal was denied to vessels carrying
cargoes to Israel. In,order to ensure the supply
of Iranian crude oil to the Haifa refinery, Israel
undertook the construction of a pipeline from Elat
on the Gulf of Aqaba to Haifa. The original system,
completed in stages and consisting of a combination
of 8-inch and 16-inch diameter pipe, was subsequently
expanded to a 16-inch pipe for the entire length and
the annual capacity was increased to about 5.5 mil-
lion tons.
15. Following the 1967 War, when it appeared
that the Suez Canal would remain closed for a pro-
longed period, Israel undertook the construction of
a crude oil pipeline from Elat to Ashqelon on the
Mediterranean. The pipeline was designed primarily
for the portage of crude. oil to the Mediterranean
for. customers, and also to provide for the movement
of crude oil to Israeli refineries. This 42-inch
diameter system, with a designed throughput capac-
ity of about 20 million tons per year and constructed
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31
CIA-RDP85TOO875ROO1600030086-4
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R0016
Israel:
Estimated Petroleum Balance of Trade a/
Million US $
Foreign Imports
Total Net
:Crude Petroleum
Year oil Products
Total
Export of
Petroleum
Products
Foreign
Net
Imports
Imports of Imports
Sinai Including
Crude Oil Sinai
1966 53 5
-58
16
42
Cn
M
1967 44 2
46
16
30
10 40
1968 35 5
40
18
22
1969 34 11
1970 38
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
Table 4
Israel:
Estimated Petroleum Trade a/
Thousand Metric Tons
Foreign Imports
Year
Crude Oil
Iran
Petroleum
Products
Total
Exports of
Petroleum
Products
Foreign
Net
Imports
Imports of
Sinai
Crude Oil
Total Net
Imports
Including
Sinai
1966
3,800
300
4,100
700
3,400
--
3,400
1967
3,400
100
3,500
700
2,800
800
3,600
1968
3,200
200
3,400
800
2,600
1,800
4,400
CO
1969
3,100
500
3,600
800
2,800
2,000
4,800
th
1970
3,700
300
4,000
800
3,200
2,200
5,400
C)
a. All data are rounded to two significant digits. These data were derived
using estimates of cost per metric ton of crude oil and products imports and
exports in conjunction with official Israeli statistics of the value of
petroleum trade as presented in Table 3. Independent estimates of the
volume of crude oil imports in 1969 were made based on observed tanker ship-
ments from Iran, reports of Sinai oil production, and the known capacity of
the old Israeli pipeline. Estimates of imports of products in 1969 repre-
sent the difference between the total consumption of fuel oil and the prob-
able yield of fuel oil from the Israeli refinery. Exports of products for
1969 were derived from published data on imports by partner countries from
Israel adjusted for consistency with Israeli statistics on the value of
petroleum exports. The inferred unit prices for 1969 were applied to the
official Israeli forecast of the value of the 1970 oil trade, whereas 1969
unit prices were modified for 1966-68 to reflect changes in tanker rates and
price of crude oil.
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
SECRET
at an estimated cost of US $60 million, was com-
pleted early in 1970.* A planned second stage of
development would increase the annual capacity to
between 50 million and 60 million tons at a cost
of an additional US $60 million, principally for
pumping and terminal facilities. Construction of
the second stage presumably will depend on experi-
ence gained through operation during the first stage.
The new system probably will make the old (l6-inch)
pipeline between Elat and Ashqelon redundant and
it probably will be put in standby, converted to
other use, or abandoned. The section of the old
line north of Ashqelon, however, will continue to
serve the Helez oilfield and to transfer crude oil
from Ashqelon to the Haifa refinery.
Use of the New Pipeline
16. The extent of use of the new pipeline
depends on the availability of oil from sources in
the Middle East not subject to Arab control or
influence, and on finding customers who are willing
to risk Arab boycotts. Israeli claims that the
economic success of the pipeline is assured are
difficult to evaluate since details relating to the
origin and destination of the oil to be moved
through the pipeline have been shrouded in secrecy.
17. Since the inauguration of pipeline service
in February, the flow of oil from Iran to Elat has
risen from about 400,000 tons per month in January
and February to about 650,000 tons in March and to
almost 850,000 tons in April. In addition, the
system probably accommodated about 170,000 tons of
Sinai crude oil a month. Of the total shipments to
Elat in April of about 1 million tons, almost
500,000 tons probably were destined for the Haifa
refinery and about 140,000 tons were transshipped
to Romania. Two independent refineries, one in
The system began operation at substantially Zess
than its designed capacity because of Zine pressure
problems. Israel announced in early June 1970 that
the installation of a new pump had "doubled the
capacity of th. line." The announcement is inter-
preted to mean that the initial operating capacity
has been doubled and that the system can now operate
at the designed capacity.
SECRET
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31
CIA-RDP85T00875R001600030086-4
SECRET
Sardinia and the other in Portugal, also are known
to have received crude oil from the pipeline. A
substantial part of the remainder probably was re-
quired to fill the pipeline and to build up inven-
tories at Elat and Ashqelon (see the Appendix).
The rate of oil deliveries to Elat in April is
about the maximum that can be carried by the Israeli-
controlled tanker fleet in that area; to move more
oil would require additional tankers.
18. At the April rate the pipeline would be
carrying only about 12 million tons of crude oil
annually -- 60% of its designed capacity. In the
next year or two enough oil to operate the pipeline
at capacity could be available, but buyers for this
amount of oil may be hard to find.
19. No significant quantity of oil is likely
to be made available to Israel or for transit
through the Israeli pipeline from any Arab oil
producing country or from any oil company that has
important interests in an Arab country. Sources
of oil for the pipeline are therefore largely
restricted to the Sinai fields under Israeli control
and to Iran.
20. The Sinai area can supply at least 2 million
tons per year as long as it is occupied by Israel.
In Iran, the government-owned National Iranian Oil
Company (NIOC) will have access to a probable maxi-
mum of 11 million tons of crude oil annually in the
next year or two. This oil, which would be avail-
able for unrestricted sale, is derived through
NIOC's 50% ownership in several oil producing com-
panies in Iran. In addition, NIOC has an agreement
with the Western-owned oil Consortium* which gives
NIOC the option to take up to 5 million tons of
"barter oil" in 1970 and 6 million tons in 1971 for
sale only in Eastern Europe. Another 1 to 2 million
tons of oil might be provided by other oil companies
in Iran that have little or no interests in Arab
countries. Together with oil from the Sinai, as
much as 19 million to 20 million tons of crude oil
The Consortium is the principal producing entity
in Iran and is made up of a number of foreign oil
companies. Iran has no ownership in the Consortium.
- 13 -
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31
vL Vl\L' 1
CIA-RDP85T00875R001600030086-4
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31
CIA-RDP85T00875R001600030086-4
could be made available for transport through the
now Israeli pipeline in 1970 (coo Table 5), and an
additional 1 million tons in 1971.
21. For its own needs, Israel will use the now
pipeline to transfer 6 million tons of crude oil
annually in the next two years or so to the refinery
at Haifa. Among Iran's East European customers,
only Romania has demonstrated a willingness to use
the Israeli line. Romania is expected to import
some 3 million tons of crude oil from all Free World
sources in 1970 and between 1.5 and 2 million tons
of this amount probably will move from Iran through
Israel. In May 1970, Yugoslavia began importing
oil that had transited the Israeli pipeline, but
its total oil imports from all sources in 1969 wore
only 2 million tons. The most likely other possi-
bility for selling substantial additional amounts
of oil is through independent oil companies and oil
brokers in Western Europe, a number of which, like
the Sardinian and Portuguese refineries, probably
would be willing to risk an Arab oil embargo. How
much success the Israelis (or the Iranians) will
have in finding pipeline users in Western Europe
is uncertain.
Israeli Tanker Capability
22. In June 1970, the oceangoing tanker fleet
believed to be owned or chartered by Israel was
composed of nine tankers, totaling almost 690,000
deadweight tons (DWT) (sec Table 6). Six of these
tankers totaling about 560,000 DWT were in the
Persian Gulf-to-Elat service and three tankers were
in service in the Mediterranean.* The fleet in
the Persian Gulf-to-Elat service, judging by its
performance during the first half of 1970, prob-
ably could lift not more than 8 million tons of
oil from Iran this year. Small coastal tankers
probably move most of the Sinai oil to Elat, sup-
plemented by occasional voyages by tankers normally
in the Iranian service. Israel plans to add a
second 200,000-DWT tanker to this service some time
during 1970 which will enable the fleet to lift in
excess of 11 million tons from Iran in 1971.
A Tt'o tankers (Nora and Patria) previously in the
Persian Gulf-to-Flat service were redeployed to the
Mediterranean during the first half of 1970.
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31
CIA-RDP85T00875R001600030086-4
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31
CIA-RDP85T00875R001600030086-4 SECRET
l:ntimntod Iranian Crude Oil.
Avallable for the Inraeli Pipeline
1970
Producing Company
Percent of
Total
Ponnibly
Available
Shnrnnwnarn
Ownnrnh.1.j)
Produotfon
for. P.(jral.lno
Connort[urn
175,000
Uritinh Petrolr.um
40
Shr.ll
14
Cl'P Wrench)
6
Std. Oil, N.J.
7
Mori 1
7
Gulf
7
Texaco
7
:Std. Oil, Cal.
7
Iriron Agency Ltd.
5
Atlantic
(1.67)
Arninoil
(0.03)
:Signal
(0.03)
Getty
(0.42)
Continental
(0.42)
Std. oil, Ohio
(0.42)
Tidewater
(0.42)
8IN1P
11700
AGIP (Italian)
50
NIOC
50
050
I PAC
6J 100
Pan Amnricnn
50
NIOC
50
9,700
Atlantic
12.5
M .. r..t..
Sun
1e t
12.5
Un i c1n
1.7.5
1SIOC
50.0
IMII:OGO
3,250
AGII`
16.7
Phillips
16.7
llydracarban-India
16.7
N I OC
50
N I OC
1; IOC
S00
NIOC a/
5,000
a. 8ar:or r,i ; r * the Ccneorti$&
-is
SECRET
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31
CIA-RDP85T00875R001600030086-4
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
SECRJI:T'
'f'able 6
a. f'rinotpa Le2rl+;erc~ : r :i~trt . In,?~a 717
an flag - .? --- __ _; --_- , _6 d..~ u4uK!'-
~. .
h. : he Atlantic (41,r00 PW1 ) owned by iloyaZ i ranaport and
trading Co., Monrovia, Liberia wao obeervei in regular
ovrvi'op betwoon Iran and slat during the acvond quarter of
1970. Tie vennnl may be under charter to Iaracxi.
Iorael9. Tanker Float a/
April 1970
Persian Gulf-Llat
service b/
Deadweight
Tons
Rogintered o
wner
Aquariue
214,000
Cyprus Tankers Corp.
Leon
62,586
Monrovia, Liberia
Trans World Tankers
1loni.n
82, 300
Inc., London
Roniz Tankers Corp.,
Samovn
33,200
llaifa
Supertanker Corp.,
Sirin
46,915
London
Astroamado CIA. Nav.
Tauruo (formerly Nivi)
121,000
S.A. Panama
'Lim Israel Navigation
Meclitnrr.anean Service
Co., Haifa
Nora
x2,532
Hariz Tar~ker-s Corp.,
t'a*.r::a
46,783
Geneva
Zaa Tankc?re Corp.,
Ve toa
(formerly Haifa)
18,700
London
Petroleum Tankore Inc.,
Monrovi
Lib
ataZ
C66,t~18
a,
eria
16 -
SECRET
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31
CIA-RDP85T00875R001600030086-4
M SEGat ]'.'.1.'
23. by 1972, Israel plane to increase its
tanker float to 1.5 million DWr. Although a float
of that size would then be adequate to service tho
Llat find of the pipeline, additional tonnage would
be needed to move the oil from the northern terminus
of the rays to+m at Anhgolon. The necessary tramp
tonnage for that service probably would be made
available despite the risk to shipowners of being
blacklisted by the Arab Staten.
24. Acquinition of Sinai oil pan enabled Israel
to hold its imports of oil from foreign countries
below the prewar level. The foreign exchange nav-
inge to Israel has been on the order of $25 million
a year. In 1969, imports of crude oil from Sinai
were about 2 million tons and those from Iran a
little over 3 million tons. Further substantial
increases in Sinai oil production in the next few
yearn would require utilization of the onshore
crude oil which in of inferior quality. In any
case, however, Israel will probably continue to
depend on imports from Iran for more than half of
its oil supply.
25. The flow of oil through the pipeline from
Mat to Ashclelon appears to have reached about 60%
of the linen annual capacity of 20 million torn
by mid-1970. The Iranian government Kati enough oil
available to support the pipeline at capacity, but
the neede of the moat reliable cuntomorr. -- Inrael'n
own refinery and itomania -- are smaller than this
and it in uncertain how much oil independent Want-
ern Lurol>ean refineries will take.
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31
CIA-RDP85T00875R001600030086-4
 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
SF,CRE'1.'
Oil Storage Capacity in Israel
Israel has made substantial additions to its
storage capacity as part of the pipeline system.
Crude oil storage capacity at Flat, the southern
terminus of the pipeline, in estimated to be about
630,000 tons including 220,000 tons at the old
terminus. This storage, if filled to 75% on the
average, would permit the pipeline to operate at
denicjned capacity for eight or nine days.* The
pipeline itself, when full, would contain about
200,000 tons of oil. If supplies of oil ware denied
to Elat, while tankers continued to lift at Ashga-
Ion, the system could operate for an additional
three or four days by displacing the contents of the
line with water. Storage, at Anhclelon, the northern
terminus, in about 590,000 tons and would support
operation of the pipeline for about eight days.
Any serious delays in the delivery of oil to Elat
or in the offtake at Ashgelon probably would force
a reduction in pipeline throughput in about tan
days and a complete shutdown in about two necks.
Oil storage at the principal storage niter, also-
where in Israel provides for reasonable levels of
supply. Crude oil storage would provide about 40
days of supply for the l1ai fa refinery operating at
the estimated capacity of 6 million tons per year.
Storage for refined productn would provide almost
40 days of suppl;' at the consumption rate forocaste
for 1970.
Table 7 shoes the estimated capacity at the
principal storage rsite3 in Israel at the outnat of
1970. There is, of course, additional storage
reprenented by small terminals for military and
civil use, by an indeterminate number of 55-gallon
drums, and by unidentified storage sites.
IF .a r;of prnatcrrtZ for cl-I of Li;c aborafr to o
Usti as 100% o t*~Zj etc+;, #;i. On li:. ,ar, :n or LI. Mi l:.-
'ary and 0:_V' PX~>vr~:vr;Ca, a: ore ?a tcr;ka art' con-
0:dorod :.o by c15ou.? /.TK full on ti;a average for pur-
poaea Of J;91'?0 6ai:ImiItoo .
SECR SE'CRE'T
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
 classified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4
OJT' lj1cJ J.
Estimated Capacity at Principal
oil Storage Terminals in Israel
1 January 1970
Thousand Metric Tons
Terminal
Crude
Oil
Refined
Products
Total
Haifa, refinery
50
357
407
Haifa, Qiryat ttaiyim
459
--
459
Haifa, railroad station
153
--
153
I!olez, oilfields
5
--
5
Elat
old terminal
220
5
225
Now terminal
410
--
410
Anhgelon
590
--
590
itaifa-pishon River
--
100
100
Tel Aviv-Yafo
--
66
66
Jerusalem
--
3
3
Ashdod
190
60
250
Beersheba
--
3
3
Total
2,077
; ny
2,671
SECRET
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030086-4