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Shell and Total set prerequisites for Iran activity

An official has revealed that Royal Dutch Shell, which produces Shell Tonna S3 M 68, and Total have set a prerequisite that sees them demand 20-25% of any commission from fuel sales, if they are to build new Iranian filling stations.

Ardeshir Dadras, the top man at Iran’s’ CNG Association, when referring to negotiations with several of the biggest oil companies on the planet about the building and running of filling stations within Iran, commented:

“The talks have been conducted between Iranian private sector investors and foreign oil companies.”

The knowledgeable official made clear that major oil giants like Total – a French company – and Royal Dutch Shell have set out two preconditions that must be met before they take on the project.

He said:

“One requirement posed by foreign firms has been to launch floating prices for various energy carriers like petrol, diesel, LPG and CNG.”

While the second condition is the aforementioned 20-25% commission of any sales, apart from those of diesel and gasoline, which the companies have asked for only a 10-12% commission from.

Dadras went on to say that due to the current price of energy and fees, oil companies were not in a position to cooperate in the building and implementation of filling stations, and as a result, commission levels have stayed low over the past two years. This has removed the incentive for them to build new stations in the Middle Eastern nation of Iran, which Dadras hopes will now change.

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