Shell returns to Iran after sanctions

Shell signed a non-binding memorandum of understanding with the National Iranian Oil Company on Wednesday to develop the Kish natural gasfield and the South Azadegan and Yadavaran oil deposits.

It is the first deal in the Gulf country for the Dutch company, the second-largest publicly listed oil firm in the world, since international sanctions on Iran were lifted earlier this year.

Early reports in the Wall Street Journal and other media had said Total would also sign an MoU in Tehran on Wednesday, though Reuters later reported that the French company was about to start talks on different projects in Iran.

Total, in partnership with China’s CNPC, last month struck a similar deal to develop the giant South Pars gasfield in Iran.

The challenges oil and gas companies face when doing business with Iran were illustrated a few weeks ago when BP took special measures to shield its CEO, a US citizen, from the potential impact of US sanctions against Iran and created a special committee to study business opportunities in the Gulf country.

Though the main body of international sanctions against Iran and its controversial nuclear programme were lifted earlier this year, just last week the US congress voted to extend its own sanctions for an additional 10 years.