Topic: BP and EU lobbied US on Iran sanctions: sources
smart2009's photo
Mon 01/23/12 10:04 AM
LONDON (Reuters) - BP Plc, the British government and the European Union lobbied U.S. lawmakersto have a BP-led projectexempted from proposed new U.S. sanctions which seek to stop Western companies doing business with Iran, sources close to the matter said.
U.S. lawmakers are mulling new sanctions to constrict the funding that Western nations suspect Iran is using to develop nuclear weapons.
One congressional aide said senators were discussing provisions that could bar companies like BP fromworking with the National Iranian Oil Company (NIOC).
NIOC's subsidiary, Naftiran Intertrade Co, owns a 10 percent stake in the Shah Denizproject which is co-led by BP and Norway's Statoil and which is estimated to contain 1.2 trillion cubic metersof gas.
Production at the deposit began in 2006, while second phase production -- which is expected to help reduce Europe's reliance on Russia for its gas supplies -- is expected to begin by late 2016 or early 2017.
"The EU has requested that the United States exempt Shah Deniz from U.S. sanctions on the grounds that the project is important to EU energy security," a British government source said.
BP acknowledged discussing the matter with lawmakers.
"We have routine engagement with Congress and we regularly provide information to help them understand the impact of potential legislation on certain activities we are involved in," a spokesman said.
BP has already been forced to shut production at the Rhum gas field in the North Sea, following European Union (EU) sanctions, because the Iranian Oil Co Ltd has a 50 percent.
However, Shah Deniz was exempted from these sanctions because it is seen as more strategic. The U.S.is also an eager supporter of the project as it is keen for Europe to reduce its reliance on Russia for energy imports.

smart2009's photo
Mon 01/23/12 10:57 AM
Oil prices climbed Monday as tensions increased over the security of oil shipments from the Persian Gulf.
The price of oil has stayed around $100 a barrel in recent weeks on concerns about tanker traffic through the Persian Gulf. Traders worry that those shipments, which supplyone-sixth of the world's exports, could slow if Western nations continue to confront Iran over its nuclear program. Iran has threatened to close off the Persian Gulf if the U.S. and other nations impose more sanctions. Those threats grew louder Monday after the European Union agreed to stop buying Iranian oil in July.
Benchmark oil rose 67 cents to $99 per barrel atmidday in New York. Brent crude, which is used to price foreign oilsthat are imported by U.S.refineries, rose by 50 cents to $110.36 per barrel in London.
Analysts said the European embargo would force a reshuffling of oil markets to make up for the loss of Iranian oil to the West. China, which isone of the biggest buyers of Iranian crude, probably will buy more Iranian oil at below-market prices as the embargo begins. That will reduce China's demand from other oil-producing countries that would then sell more to Europe.
"Iran needs to sell its oil to someone," independent analyst andtrader Stephen Schork said. "Outside the West, Iran really has only one buyer: China. That meansChina's probably going to get some sweetheart deals."
Meanwhile, natural gas prices rose more than 5 percent after one of America's biggest natural gas producers said it would cut production and exploration this year.
Chesapeake Energy said it will cut production and exploration because of cheap prices and a massive buildup in supplies. Natural gas production has been surging in the U.S. thanks to new techniques that helped the industry aggressivelydrill into underground shale deposits.
Natural gas prices have dropped to the lowest wintertime level since 2002. The Chesapeake announcement pushed futures prices 13 cents higher to $2.47 per 1,000 cubic feet.
In other energy trading, heating oil rose 2 cents to $3.01 per gallon, while gasoline futures were flat at $2.78 per gallon.

Ladylid2012's photo
Mon 01/23/12 11:01 AM
of course they did....