30 April 2010
Tehran: Italy's Eni says it will not extend its contracts to develop an Iranian oil field as it may lead to US sanctions against the oil firm. State-controlled Eni, Italy's biggest oil and gas company, signed contracts in 2001 with the Iranian government to develop Darkhovin oil field.
In an annual report filed with the US Securities and Exchange Commission, Eni said it would not extend its contracts for the third phase of the project because of the government pressures and fear of US sanctions against the company.
"Our activities in Iran could lead to sanctions under relevant US legislation," the report said.
"Specifically, activities are progressing to hand over operatorship of the Darkhovin oilfield to the local partners as development activities were concluded at this field in 2009."
Eni's Chief Executive Paolo Scaroni also said on Thursday that the company intends to sell off its shares in the oil field.
Italy has been one of Iran's major European partners and Eni has been doing business with Iran since 1957.
However, Italy's close ties with Israel and the US, which is pushing for a fourth round of sanctions against Iran in the UN Security Council, have reduced Rome's commercial dealings with the Islamic Republic.
Italian Foreign Minister Franco Frattini had earlier said that Rome has suspended export credit guarantees for firms investing in Iran, adding that Italy intends to block new investments in Iranian oil and gas industry.
Under the US Iran Sanction Act, sanctions might be imposed on any person or company that invests more than $20 million a year in Iran's energy sector.
Tehran: Italy's Eni says it will not extend its contracts to develop an Iranian oil field as it may lead to US sanctions against the oil firm. State-controlled Eni, Italy's biggest oil and gas company, signed contracts in 2001 with the Iranian government to develop Darkhovin oil field.
In an annual report filed with the US Securities and Exchange Commission, Eni said it would not extend its contracts for the third phase of the project because of the government pressures and fear of US sanctions against the company.
"Our activities in Iran could lead to sanctions under relevant US legislation," the report said.
"Specifically, activities are progressing to hand over operatorship of the Darkhovin oilfield to the local partners as development activities were concluded at this field in 2009."
Eni's Chief Executive Paolo Scaroni also said on Thursday that the company intends to sell off its shares in the oil field.
Italy has been one of Iran's major European partners and Eni has been doing business with Iran since 1957.
However, Italy's close ties with Israel and the US, which is pushing for a fourth round of sanctions against Iran in the UN Security Council, have reduced Rome's commercial dealings with the Islamic Republic.
Italian Foreign Minister Franco Frattini had earlier said that Rome has suspended export credit guarantees for firms investing in Iran, adding that Italy intends to block new investments in Iranian oil and gas industry.
Under the US Iran Sanction Act, sanctions might be imposed on any person or company that invests more than $20 million a year in Iran's energy sector.
© IRNA 2010
