Companies Reducing Energy-related Business with Iran

As part of our efforts to increase the pressure on the Government of Iran to comply with its international obligations, the U.S. Government has been aggressively urging foreign governments and companies to avoid commercial activity in Iran’s energy sector until Iran complies with its international obligations. The results of the State Department’s efforts are clear: Companies are recognizing the increased risks of doing business in Iran and terminating their operations there or committing not to engage in any new activities in Iran.

The following are some of the companies that have announced they are discontinuing their activities in Iran's energy sector.

Refined Petroleum

• Turkish refiner Tupras told the State Department in August that it had cancelled contracts to supply gasoline to Iran.
• French oil group Total, Royal Dutch Shell, Kuwait’s Independent Petroleum Group, and India’s Reliance have all informed the State Department that they stopped refined product sales to Iran earlier this year.
• Swiss energy traders Vitol, Glencore, and Trafigura all publicly committed in March 2010 not to supply refined petroleum products to Iran.
• Russian oil firm LUKOIL in April announced that it had ceased gasoline sales to Iran. LUKOIL re-confirmed this commitment to U.S. officials on Sept. 2 after press reports to the contrary.
• BP and Shell have told the State Department they are no longer supplying jet fuel to Iran Air.

Upstream Projects

• Shell, Total, ENI and Statoil have all ended or are in the process of terminating their activities in Iran and have all committed not to engage in any new activities there.
• Shell and Repsol have abandoned negotiations over development of phases 13 and 14 of the South Pars gas field and have committed to us not to engage in any further discussions with Iran.
• South Korea's GS Engineering & Construction announced on July 1 that it had cancelled a $1.2 billion gas processing project in Iran.

Shipping

• Lloyds of London announced on July 9 it would not insure or reinsure petroleum shipments going into Iran.
• Key shipping associations have created clauses in contracts that enable ship owners to refuse to deliver refined petroleum cargoes to Iran.
• Hong Kong shipping company NYK Line Ltd, announced that it had decided to withdraw from trade with Iran.