Shell Company 'Ready to Pay $2 Billion Debt' to Iran

Ben van Beurden, CEO of Shell, announced after meeting with Bijan Namdar Zanganeh, Iran's Minister of Oil, that the company is ready to pay its debt to Tehran 'once the legal grounds are established.' According to a June 4 report by the Wall Street Journal, van Beurden stated that the payment of the $2.3 billion debt to Iran would be possible after the legal conditions – the lifting of sanctions – are met. The debt owed by Royal Dutch Shell to Iran is for oil purchases from the National Iranian Oil Company, which has not been paid due to sanctions. This report reminds Western companies that before considering returning to or entering the Iranian market, they must wait for the resolution of legal issues arising from sanctions. The CEO of Royal Dutch Shell in Vienna, after meeting with the Iranian Minister of Oil, said, 'The payment of Shell's debt to Iran will be possible after obtaining permission from the governments of the UK, Netherlands, and the US.' The conditions for the repayment of oil companies' debts to Iran are still unclear. In 2013, about two years ago, the UK government prevented Shell from paying its debt to Iran. The company stated that at that time it sought to pay its debt in the form of goods such as wheat and other grains and medical supplies, but despite these goods not being subject to sanctions, the UK government blocked it. Van Beurden also promised the Iranian Minister of Oil that as soon as sanctions are lifted, Shell would return to Iran to explore opportunities for operations in the oil and gas industry. News reports indicate that in Vienna, Bijan Namdar Zanganeh met separately with executives from other oil companies such as Lukoil from Russia, Total from France, and BP (British Petroleum) and shared the new form of Iran's oil contracts with them. According to the Iranian Minister of Oil, the new oil and gas contracts are highly attractive to foreign investors. The report indicates that American oil companies have also expressed interest in the Iranian oil market. For instance, the CEO of ConocoPhillips stated that he is eager to explore opportunities for operations in Iran.