European Companies Must Compensate For Imposing Oil Sanctions

Tehran, Feb 21, IRNA – The European companies must pay compensations for imposing oil sanctions on Iran in contravention of the oil contracts already signed with the country, Managing Director of National Iranian Oil Company Ahmad Ghalebani said on Monday. He told IRNA that Iran had not been initiator of oil sanctions and the European governments passed resolutions on banning Iranian oil, so Iran holds the European companies accountable for violating the contracts. He made the remarks on the sidelines of a ceremony to sign contracts for development of Kouh Mond, Kaki and Bashgan oilfields. He said that Iran used to export 5,15000 bpd crude oil to European countries, but, the amount has been reduced. Ghalebani said that the contracts already signed with the UK and French companies are being terminated and several others are still in force. He warned the other European countries of halting oil exports if they pursue hostile approach towards Iran. Ghalebani said that crude oil prices rose up to dlrs 120 a barrel from dlrs 103 following Iran's decision to cut oil exports to Britain and France. He predicted oil prices will hit dlrs 150 a barrel upon similar measures against other European companies. He did not give a direct response when he was asked whether Iran would agree to supply oil to Greece, he said that fortunately demand for Iranian oil has increased. Ghalebani said that due to the European governments' hostile action against Iran, NIOC would agree to supply crude oil to the European companies if they sign two-to-five-year long unconditional contracts. He said that it was not Iran that stopped crude supply to the European countries but the European governments initiated the sanctions./end