Royal Dutch Shell is running into difficulties in paying its $1-billion debt to the National Iranian Oil Company.
Reuters reported on Shell’s announcement that sanctions placed on Iran by the U.S. and the European Union have made it almost impossible to process its debt payment.
An unidentified industry source has told Reuters that Shell is working hard to pay its debt to the National Iranian Oil Company and that: “They want to stay on good terms with Iran, while abiding by sanctions."
Shell is reportedly ranked as Iran’s second-biggest corporate client, tied with France’s Total and surpassed only by Turkey’s Tupras.
Shell CEO Peter Voser had said earlier that the company will be taking its final deliveries of Iranian oil “within a matter of weeks.”
The European Union has approved an embargo on Iranian oil starting in July 2012. Iran’s financial institutions have also been put under EU and U.S. sanctions, making it difficult for foreign companies to do business with Iran.
Total has already stopped buying Iranian oil, and some industry analysts blame the new obstacles to making payments.
Shell has apparently approached the British government to help settle its debt with Iran but it was turned down.