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Shell starts paying off its giant oil debt to Iran

Oil&Gas Materials 21 February 2016 13:59 (UTC +04:00)
The process for paying oil giant Shell’s $2-billion debt to Iran has started, a spokesman with the company said.

Baku, Azerbaijan, Feb. 21

By Umid Niayesh- Trend:

The process for paying oil giant Shell's $2-billion debt to Iran has started, a spokesman with the company said.

"Following the lifting of applicable EU and US sanctions, we can confirm that the process for paying Shell's outstanding debt to NIOC has started," Nureddin Wefati, head of Media Relations for the Middle East and North Africa of the company told Trend Feb. 21.

Shell was one of Iran's crude oil clients before the imposed sanctions. According to Iran's government, Shell's debt to Iran amounts to $2.3 billion.

The company was involved in the development of Iran's Soroush and Norouz oil fields in Persian Gulf waters. It was also planning to develop a gas liquefaction project called Persian LNG in Iran's South Pars energy zone. However, the project was later cancelled as a result of sanctions imposed on Iran.

Last month Iran's Bank Mellat announced that it carried out preparations to open a bank account in Europe to receive Royal Dutch Shell's delayed debts.

"Some 1.2 billion euros will be deposited by Shell to the Bank Mellat's account," said the message of the bank.

The message didn't mention the banks or countries where the money would be deposited.

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