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UANI Calls on Shell to Sever All business ties in Iran

EUROINVESTOR.co.uk

10-03-2010 – 17:22

United Against Nuclear Iran (UANI) applauds Royal Dutch Shell for its decision to end its sales of gasoline into Iran, but calls on Royal Dutch Shell to sever all business ties in Iran.

UANI, in a letter dated December 17, 2009, called on Shell to disclose the full extent of its business in Iran and to end its business in Iran. Shell responded to UANI on January 14, 2010 and UANI replied to Shell on February 12, 2010. The SEC indicated in response to UANI’s letter that it would “consider the information…in connection with our monitoring of Royal Dutch Shell filings.”

In response to Shell’s decision, UANI President, Ambassador Mark D. Wallace said, “UANI applauds Royal Dutch Shell for making the responsible decision to end its sales of gasoline into Iran. Such a decision, however, only goes half way to isolating the Iranian regime.

Shell must end its hydrocarbon development business in Iran. Proceeding with such Iran-based business makes Shell too toxic for its investors and the many western businesses and governments that do business with Shell. We call on Royal Dutch Shell to end its extensive hydrocarbon projects focused on Iran, and to sever all business ties in Iran.”

According to Shell:

  • In early 2007, Shell and Repsol entered into a service contract with respect to development of the South Pars fields for the Persian LNG project. However, the parties will not reach a final decision on whether to proceed with the project until the remaining significant commercial and engineering work is complete. Shell Exploration B.V. (Shell interest 100%) has a 70% interest in an agreement with the National Iranian Oil Company (NIOC) concerning the Soroosh/Nowrooz fields. The development phase is completed and all permanent facilities were handed over to NIOC in 2005. Since then, the Soroosh/Nowrooz fields have been producing with NIOC responsible for all aspects of the operations. The term of the agreement expires when all petroleum costs and the remuneration fee have been recovered, which is expected to occur by 2012.
  • A project framework agreement for the Persian LNG project (Shell interest 25%) was signed in 2004 with Repsol and the National Iranian Oil Co. to take forward the Persian LNG project to the next stage of design. Under this agreement, it is envisaged that Shell would acquire a 50% interest in a project to develop phases of the South Pars field in the Northern Gulf and a 25% interest in the midstream liquefaction company. Front-end engineering design work for the offshore facilities and for the liquefaction plant continued during 2008. The parties will not reach a final decision on whether to proceed with the project until the remaining significant commercial and engineering work is complete.
  • Since 1966, a Shell entity has a 25% interest in Pars Oil Company, a joint venture that blends and markets lubricants. Pars Oil Company owns 51% in Pars and Shell Company (PASH), which markets and distributes Shell branded lubricants in Iran. A Shell entity also has a 49% in PASH. We have received legal advice that, contrary to the assumption in your letter, the company is in compliance with its disclosure and listing obligations.

UANI has effectively pressured companies such as General Electric, Huntsman, Siemens, Caterpillar, and Ingersoll Rand to end their business in Iran.

United Against Nuclear Iran (UANI)

Kimmie Lipscomb, (212) 554-3296

[email protected]

SOURCE ARTICLE

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