Shell to stop purchasing oil from Iran

A spokesman for the company on Thursday confirmed remarks made by Chief Executive Peter Voser at a conference in Houston, Texas on March 7, the Associated Press reported.

“We are complying with the sanctions. They do recognize previous commitments and contracts,” Voser said in the conference, adding that old contracts will be fulfilled and shipments delivered “within a matter of weeks.”

The report comes as Iranian Oil Minister Rostam Qasemi on March 6 rejected reports of Tehran selling oil to the Royal Dutch Shell Company’s refinery located on Singapore’s Bukom Island.

On March 2, Reuters reported that a National Iranian Tanker Company’s (NITC) oil tanker has docked at Singapore’s Bukom Island to deliver crude oil to the Royal Dutch Shell Company’s refinery.

According to Reuters, the Iranian vessel, Delva, delivered about 1.5 million barrels of crude to the refinery.

Referring to EU’s sanctions against Iranian oil, Qasemi said these measures affect the global oil markets and can create chaos in them.

European Union foreign ministers agreed on January 23 to ban oil imports from Iran and to freeze the assets of the Iranian Central Bank across the EU. The sanctions will become fully effective on July 1, 2012, to give EU member states enough time to adjust to the new conditions and find alternative crude oil supplies.

On February 19, Iran stopped oil exports to British and French firms in line with the decision to end crude exports to six European states in response to sanctions imposed on the country’s energy sector.

Iran announced on February 21 that it will only continue exporting oil to the European Union if the member states guarantee to pay the price and sign medium- and long-term oil purchase contracts.

MP/AZ

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