Attacks On Major Saudi Oil Installations Show Urgent Need For Peace With Yemen
Ten drones controlled by Yemeni Houthi forces hit two major Saudi oil installations last night and caused several large fires.
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The Abqaiq (also Babqaiq) oil processing facility is 60 km (37 miles) southwest of Aramco’s Dhahran headquarters.
The oil processing plant handles crude from the world’s largest conventional oilfield, the super giant Ghawar, and for export to terminals Ras Tanura - the world’s biggest offshore oil loading facility - and Juaymah. It also pumps westwards across the kingdom to Red Sea export terminals.
The oil and gas conditioning plant in Abqaiq is the largest of the world. It sits at the center of Saudi Arabia's oil and gas infrastructure.
Abqaiq processes 6.8 million barrels of crude oil each day. More than two thirds of all Saudi oil and gas production runs through it. It is not clear yet how much of the widespread facility was destroyed.
The second target was a processing plant near Khurais 190 km (118 miles) further southwest. It lies within the countries second largest oil field. Both installations are more than 1,000 km (600 miles) from Yemen.
Saudi Arabia does not have air defenses that protect its oil facilities from attacks from the south.
PAC-2 are older U.S. made air defense systems which can not 'see' small drones or cruise missiles.
Satellite images show significant smoke coming from Abqaiq.
There is smoke coming from four additional oil facilities but it may be from emergency oil flaring that is now necessary because the processing facilities further downstream are blocked or destroyed.
Saudi Arabia said that the fires are under control. Video shot this morning shows that they continue.
In one video taken last night on the ground near the facility one can hear the high pitched noise of a drone motor and then an explosion. In other videos automatic gunfire can be heard. These were probably attempts by guardsmen to take down drones.
But drones may not have been the sole cause of the incident. Last night a Kuwaiti fishermen recorded the noise of a cruise missile or some jet driven manned or unmanned aircraft coming from Iraq. Debris found on the ground in Saudi Arabia seems to be from an Soviet era KH-55 cruise missile or from a Soumar, an Iranian copy of that design. The Houthi have shown cruise missiles, likely from Iran, with a similar design (see below). After an attack on Saudi oil installations in August there were accusations that at least some of the attacks came from Iraq. Iran was accused of having been involved in that attack. While this sounds unlikely it is not inconceivable.
That attack in August was the checkmate move against the Saudi war on Yemen. As we wrote at that time:
Saudi Arabia finally lost the war on Yemen. It has no defenses against the new weapons the Houthis in Yemen acquired. These weapons threaten the Saudis' economic lifelines.
Saudi Arabia has nothing that could stop mass attacks by these drones. It would require hundreds of Russian made Pantsyr-S1 and BUK air defense systems to protect Saudi oil installations. There would still be no guarantee that they could not be overwhelmed.
New drones and missiles displayed in July 2019 by Yemen’s Houthi-allied armed forces
The Houthi armed forces spokesman claimed responsibility for today's attack:
This operation is one of the largest operations carried out by our forces in the depth of Saudi Arabia and came after a accurate intelligence operation and advance monitoring and cooperation of honorable and free men within the Kingdom.
The claim of cooperation by people in Saudi Arabia will make the Saudi rulers even more paranoid than they usually are. It may well be that the drones were launched from inside Saudi Arabia and that their launch point was far nearer to the target than is publicly assumed.
The spokesman continued:
We promise the Saudi regime that our future operations will expand further and be more painful than ever as long as it continues its aggression and siege.
We affirm that our goals bank is expanding day by day and that there is no solution for the Saudi regime except to stop the aggression and siege on our country.
The war on Yemen, launched by the Saudi clown prince Mohammad bin Salman in 2015, cost Saudi Arabia several billion dollar per month. The Saudi budget deficit again increased this year and is expected to reach 7% of its GDP. The country needs fresh money or much higher oil prices.
Saudi Arabia recently renewed plans to sell a share of its state owned oil conglomerate Aramco. Earlier this month the long time Saudi Energy Minister Kalid al-Falih was first demoted and then removed from his position and replaced by Abdulaziz bin Salman, a half-brother of the clown prince:
"The long tradition of the oil minister as a technocrat non-royal has been broken, and the best theory is that departing minister Khalid Al Falih was too resistant to the pace of change pursued by Crown Prince Mohammed Bin Salman," wrote Paul Sankey, energy analyst with Mizuho.
The removal of Kalid al-Falih ended the nationalist resistance against the selloff of Aramco and the countries wealth.
But who will buy a share of the company when its major installations are not secure but under severe attacks?
The Saudi clown prince will have to make peace with Yemen before he can sell Aramco shares for a decent price. He will have to cough up many billions in reparation payments to Yemen and its people before the Houthi will be willing to make peace.
First Saudi attempts to sue for peace were made two weeks ago. It seems that they asked the Trump administration to work out an agreement with the Houthi:
The Trump administration is preparing to initiate negotiations with Iranian-backed Houthi rebels in an effort to bring the four-year civil war in Yemen to an end, The Wall Street Journal reported Wednesday.
The effort is reportedly aimed at convincing Saudi Arabia to take part in secret talks with the rebels in Oman to help broker a cease-fire in the conflict, which has emerged as a front line in the regional proxy war between Riyadh and Tehran.
Nothing has been heard of the initiative since. The Saudis need to move fast to end the war. Unless that happens soon we can expect further escalations and more attacks like the ones earlier today.
