Baku, Azerbaijan, Aug.13
By Fatih Karimov - Trend: Iranian oil minister Bijan Namdar Zanganeh says Royal Dutch Shell is ready to pay the $2.3 billion it owes to Iran.
However, transaction of the money is not possible for the time being due to the banking sanctions against Iran, the Mehr news agency quoted Zanganeh as saying on Aug. 13.
Shell lost money trading Iranian crude in 2012 shortly before a European Union embargo and still owes $2.3 billion to Tehran for oil purchases.
Zanganeh said on May 6 that he has tasked a working group with collecting $2.3 billion debt from Royal Dutch Shell.
The firm said its trading division generated gross revenue of $481 million in 2012 on Iranian oil purchases and a net loss of $6 million. Condensate and fuel oil purchases from Iran generated gross revenue of $631 million and a net profit of $4 million, failing to compensate for the loss in crude.
"None of these purchases has been paid for, and all contracts were terminated and activities ceased before June 28, 2012," Shell said referring to the date when sanctions on Iranian oil came into force.
"Currently, we have approximately $2.3 million payable to, and $11 million receivable from, National Iranian Oil Company. We are unable to settle the payable position as a result of applicable sanctions," Shell said.
Shell ceased upstream activities and suspended new business developments in Iran back in 2010. It is now preparing to close its representative office in Iran.