Iran, Shell hold talks for petrochemical co-op

Business Materials 9 June 2015 13:26 (UTC +04:00)

Baku, Azerbaijan, June 9

By Umid Niayesh - Trend:

A delegation from Royal Dutch Shell Company has discussed aspects of possible cooperation with the Islamic Republic in petrochemical field, deputy head of National Petrochemical Company Mohammad Hassan Peyvandi said, Iran 's Mehr news agency reported June 9.

The negotiations of Iran 's petrochemical officials with foreign companies including Shell are focused on new investments, mutual cooperation as well as mechanisms fro re-establishing cooperation, Peyvandi said, referring to the potentials of the petrochemical industry in Iran.

International sanctions against Iran over its disputed nuclear program have prevented Royal Dutch Shell Company from settling its $2.3 billion of debt to Tehran, however the company is discussing with Tehran repayment of the outstanding debt as the energy giant eyes new opportunities in the country.

In 2013, the British government prevented Shell from repaying the debt that it owes for the crude oil it bought from the NIOC (National Iranian Oil Company).

Shell was reported at the time to be trying to pay the debt in kind with grains or pharmaceuticals, which are not barred by US and European sanctions, but the UK government, nevertheless blocked it.

Iran and the P5+1 (the US, UK, France, Russia, China, and Germany) reached a nuclear framework agreement on April 2 that raised hopes for achieving a comprehensive nuclear deal by June 30 and lifting of international economic sanctions on Iran.

By holding 157 billion barrels of recoverable crude oil reserve, Iran possesses the world's fourth largest crude oil reserve.
Iran's crude oil export was above 2.2 million barrels per day (mb/d) in 2011, but the western sanctions imposed in mid-2012 have pushed Iranian oil export volume to around one mb/d in 2013.

After achieving an interim nuclear agreement in November 2013, Iran 's oil export increased steadily to around 1.11 mb/d, however, the volume reportedly decreased slightly during recent months again.

Edited by CN

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