Shell to pay $2 billion debt to Iran after lifting of sanctions

Royal Dutch Shell PLC will pay an outstanding debt of $2 billion to the National Iranian Oil Company (NIOC) when sanctions on Iran are lifted, and will consider investing in the country’s vast energy sector, a senior company official said.

“Much would depend on the terms offered by the Islamic Republic once sanctions were lifted,” said Edward Daniels, Executive Vice-President for Shell’s commercial and new business‎ development.

“We are very pleased to have been part of this historic delegation. Clearly Iran remains under sanctions with time before sanctions will be unwound and clearly we will be absolutely adhering to all sanctions,” Daniels said during a visit with a British government delegation to reopen the country’s embassy in Tehran.

“Having said that, when sanctions are removed we will look to examine possible options to work in Iran,” he added.

“Iran is and will be an important potential business area, but of course it will have to rank with other projects that we have across the world – so yes, it is a very large player in oil and gas reserves but projects need to make economic sense for our company,” Daniels said.

Shell owes Iran nearly $2 billion in outstanding debt as a result of Iranian oil deliveries for which the company had been unable to pay due to sanctions.