TREND: European oil companies hold talks with Iran on settlement of their debts

At the moment Iran is holding discussions with Royal Dutch Shell and some other European oil companies for settlement of their debts to the country, Iranian deputy petroleum minister in charge of international affairs, Ali Majedi said, Fars news agency reported on Nov. 30.

It should be noted that these debts were generated as a result of purchase of oil by these companies before the imposition of embargos against Iran.

Majedi said that in the near future these discussions will be fruitful and the problem will be settled.

Earlier it was reported that 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.

The company 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.

The company also suspended all trade with Iran before last June but failed to settle its accounts with the National Iranian Oil Company (NIOC) ahead of the embargo, which was imposed as part of the West’s standoff with Iran over Tehran’s nuclear program.

SOURCE: TREND, 2013

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