Shell courted controversy in January 2007 when they announced that they had signed a deal to help Iran develop a major gas field in defiance of pressure from the United States. [22]
Shell has been active in Iran for many years. Shell Iran has an office in Tehran [23] from which various downstream businesses are managed and which is also the centre for new exploration and production and other projects. In 1999 Shell signed an agreement with the National Iranian Oil Company to redevelop the Soroosh and Nowrooz offshore oil fields and Shell executives made it clear at the time of the signing how much the company valued its relationship with Iran [24]. Drilling commenced in 2001. Whilst American oil companies were prohibited by sanctions from working in Iran Shell, along with some other European companies (e.g. Repsol), continued to operate and pursue new opportunities in the country. This was in contrast with BP who decided not to be involved at a time when the Iranian regime was criticised for its anti-western stance, its suspected nuclear weapons programme, its support for the insurgencies in Palestine and Iraq and its institutionalised anti-Israeli and holocaust denial rhetoric.