The International Resource Journal: EU sanctions Iranian oil | BP lobbies US for project exemption

EU sanctions Iranian oil | BP lobbies US for project exemption
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Nuala  Gallagher on 22 January, 2012 09:28:00
 
IRJ – January 23 –Last week’s rumours proved true as the
European Union (EU) passed plans to enact sanctions on oil trading between its
member states and Iran, Monday, but now reports have surfaced which reveal that
U.K.-headquartered energy multinational British Petroleum (BP), accompanied by
Downing Street, lobbied U.S. legislators to exempt one of the company’s
projects from such measures.
At the EU meet in Brussels, convening governments agreed to an all-out ban on
new contracts for the import, buy or transport of Iranian crude oil, and set a
five month grace period for those with existing contracts to redirect business
dealings and find alternative means of trade. The decision follows moves already
made in the U.S. to ban Iranian oil dealing.
Also Monday, reports state that U.S. powers are considering actions to prevent
energy multinationals from partnering with the National Iranian Oil Company
(NIOC). If passed, these measures could result in difficult changes for parties
such as BP and Norway’s Statoil ASA–partners with NIOC subsidiary
Naftiran Intertrade Co. which has a 10 per cent stake in the $20 billion Shah
Deniz natural gas project in the Caspian Sea off Azerbaijan.
On Sunday 22, according to The Wall Street Journal, BP and the British
government had successfully convinced “some U.S. lawmakers” of their
case for project exemption. A congressional source told the news agency that
there is a broad belief within the House and Senate “that our sanctions
policy should impose maximum economic pain on the Iranians without allowing
Russia to hold Eastern Europe hostage for energy supplies.”
Reports continue.
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