Reuters reported today that Royal Dutch Shell is struggling to pay off $1 billion that it owes Iran for crude oil because EU and US sanctions now make it impossible to process payments.
“Shell is working hard to figure out a way to pay NIOC (National Iranian Oil Company). It is very sensitive and very difficult. They want to stay in good terms with Iran while abiding sanctions,” said an informed source to Reuters.
With daily contract volumes of 100,000 barrels, Shell was Iran’s second biggest corporate client behind Turkey’s Tupras. The EU has given European companies like Shell until July 1 to wind down their existing businesses with Iran.
Source: Reuters, 26 March 2012