EMEA News
Shell: Iran Talks Focus on $2 Billion Debt Settlement, Not New Projects
Ben van Beurden, chief executive for Royal Dutch Shell plc (Shell), says his company is still undecided if it will reinvest in Iran and is more focused on the $2 billion it owes for crude that was not paid to that country due to the imposition of sanctions in 2012, Platts reports.
Shell earlier this year discussed its debt with the Iranian government but will have to wait for the expected lifting of international sanctions before paying the money to the National Iranian Oil Company.
Van Buerden remarked, "Any pragmatic discussions we have with Iranian government and officials is pretty much about the payables that we have outstanding."
Similarly, while Van Beurden said Shell is interested in Iran because of its geological characteristics, the company is awaiting details of new contract terms that will allow it decide if it should resume investment in Iran.
“What the government's take is, the risk and rewards on these projects for international investors like ourselves, we don't know at this time, " he said.
He added, "We remain very interested - and are keeping a review brief - on Iran, but that's all there is to it."
Shell suspended new business developments in Iran in 2010 after failing to meet government requirements for phase 13 of the South Pars project; however, in July of this year Shell CFO Simon Henry said the company is interested in returning to conventional gas projects in that country.
The US Energy Information Administration believes Iran is capable of increasing crude production by about 600,000 barrels per day by the end of 2016, a development that could have a marked impact on oil and bunker prices.
