United
Against Nuclear Iran (UANI) applauds Royal
Dutch Shell for its decision to end its sales of gasoline into Iran,
but calls on Royal Dutch Shell to sever all business ties in Iran.
UANI, in
a letter dated December 17, 2009, called on Shell to disclose the
full extent of its business in Iran and to end its business in Iran. Shell
responded to UANI on January 14, 2010 and UANI replied to Shell
on February 12, 2010. The SEC
indicated in response to UANI's letter that it would "consider the
information...in connection with our monitoring of Royal Dutch Shell
filings."
In response to Shell's decision, UANI President, Ambassador Mark D.
Wallace said, "UANI applauds Royal Dutch Shell for making the
responsible decision to end its sales of gasoline into Iran. Such a
decision, however, only goes half way to isolating the Iranian regime.
Shell must end its hydrocarbon development business in Iran. Proceeding
with such Iran-based business makes Shell too toxic for its investors
and the many western businesses and governments that do business with
Shell. We call on Royal Dutch Shell to end its extensive hydrocarbon
projects focused on Iran, and to sever all business ties in Iran."
According
to Shell:
In early 2007, Shell and Repsol entered into a service contract with
respect to development of the South Pars fields for the Persian LNG
project. However, the parties will not reach a final decision on
whether to proceed with the project until the remaining significant
commercial and engineering work is complete. Shell Exploration B.V.
(Shell interest 100%) has a 70% interest in an agreement with the
National Iranian Oil Company (NIOC) concerning the Soroosh/Nowrooz
fields. The development phase is completed and all permanent
facilities were handed over to NIOC in 2005. Since then, the
Soroosh/Nowrooz fields have been producing with NIOC responsible for
all aspects of the operations. The term of the agreement expires when
all petroleum costs and the remuneration fee have been recovered,
which is expected to occur by 2012.
A project framework agreement for the Persian LNG project (Shell
interest 25%) was signed in 2004 with Repsol and the National Iranian
Oil Co. to take forward the Persian LNG project to the next stage of
design. Under this agreement, it is envisaged that Shell would acquire
a 50% interest in a project to develop phases of the South Pars field
in the Northern Gulf and a 25% interest in the midstream liquefaction
company. Front-end engineering design work for the offshore facilities
and for the liquefaction plant continued during 2008. The parties will
not reach a final decision on whether to proceed with the project
until the remaining significant commercial and engineering work is
complete.
Since 1966, a Shell entity has a 25% interest in Pars Oil Company, a
joint venture that blends and markets lubricants. Pars Oil Company
owns 51% in Pars and Shell Company (PASH), which markets and
distributes Shell branded lubricants in Iran. A Shell entity also has
a 49% in PASH. We have received legal advice that, contrary to the
assumption in your letter, the company is in compliance with its
disclosure and listing obligations.
UANI has effectively pressured companies such as General
Electric, Huntsman,
Siemens,
Caterpillar,
and Ingersoll
Rand to end their business in Iran.
United Against Nuclear Iran (UANI)
Kimmie Lipscomb, (212)
554-3296
press@uani.com