Royal Dutch Shell still owes Iran US$2.3bn for oil purchases, having traded in Iranian crude almost up until a European Union embargo was imposed in 2012
Shell revealed the figures as part of its regulatory filings, according to Reuters. The figures show how the oil major utilised the exception for pre-existing contracts and continued to buy Iranian oil right up to the mid-2012 EU embargo deadline, despite many rival companies stopping.
Shell's trading division generated a gross revenue of $481mn in 2012 on Iranian oil purchases and a net loss of $6mn while condensate and fuel oil purchases from Iran generated a gross revenue of $631mn and a net profit of $4mn.
“None of these purchases has been paid for, and all contracts were terminated and activities ceased before June 28, 2012,” said Shell referring to the date when sanctions on Iranian oil came into force.
The company added that it currently owes the National Iranian Oil Company $2.33bn, and is owed $11mn.
"We are unable to settle the payable position as a result of applicable sanctions,” Shell said.
While Shell suspended trade with Iran before June, it failed to settle its accounts with the National Iranian Oil Company (NIOC) ahead of the embargo.
According to Reuters, Shell refused to comment further on its trading with Iran in 2012 or how it planned to repay its debt to Iran.
One option, a grain barter deal involving agribusiness company Cargill, was blocked by authorities in Europe and the US and the British government refused to allow Shell to pay Iran via a direct bank transfer as it would contravene current sanctions.
