Shell set to pay Iran oil debt

Shell is getting ready to pay back a $2bn debt it owes to the Iranian Oil Company with a view to renewing business relations in the area.

In a recent visit to Iran, the executive VP of business and development at Shell, Ed Daniels commented to Reuters. He said:

“When sanctions are removed we will look to examine possible options to work in Iran. [It] 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.”

Daniels, however, would not give any comment on the timeframe for Iranian oil reaching the market, stating that that would depend on the method and timing of sanction removals, which was in the hands of other people.

Shell, which manufactures products like Shell Tellus S2 M 46, was previously unable to pay the debt after economic sanctions were placed on Iran.

Daniels was visiting the Middle Eastern nation as part of a British delegation that was in Tehran to reopen the British embassy, which has been closed since 2011. Also in the delegation was Philip Hammond, who was the first British Foreign Secretary to visit the country since 2003.

Hammond made the comment that reopening the embassy was an important step in improving relations with Iran.

As part of his visit, Daniels had a meeting with the Iranian oil minister Bijan Namdar Zangeneh, as well as Valiollah Seif, who is the Central Bank Governor of Iran.