Monday, January 10, 2005

The Daily Star - Halliburton wins Iran gas contract despite sanctions

The Daily Star - Business Articles - Halliburton wins Iran gas contract despite sanctions: "Halliburton wins Iran gas contract despite sanctions
U.S. firm seals deal through subsidiary company

Tender for drilling South Pars phases 9 and 10 is worth some $310 million
By Agence France Presse (AFP)
Tuesday, January 11, 2005
TEHRAN: Iran said Monday that U.S. oil giant Halliburton had won a major contract to drill for gas, despite U.S. sanctions against foreign investment in the country's energy industry. "Halliburton and Oriental Kish [an Iranian company] are the final winners of the tender for drilling South Pars phases 9 and 10," Pars Oil and Gas Company managing director Akbar Torkan said, according to state television. An unidentified Pars company board member said the deal for the gas fields in the Gulf off the south coast of Iran was worth about $310 million. He said Halliburton had not directly signed the contract but that it had offered its services via Oriental Kish. Under a law introduced in 1996, the United States threatens sanctions on both American and foreign companies investing more than $40 million in Iran's petroleum industry. Halliburton, once chaired by US Vice President Dick Cheney, has come under investigation in the United States for its dealings with Iran through a Cayman Islands subsidiary. The U.S. broke diplomatic ties with Tehran after Iranian university students stormed its mission in Tehran in 1980 and took diplomats hostage for 444 days. The United States also accuses Iran of covertly trying to develop nuclear weapons, a charge vehemently denied by Tehran.

Iran, OPEC's second largest oil exporter, also has the world's second largest gas reserves. Phases 9 and 10 of South Pars, operated jointly by South Korean and Iranian companies, are expected to produce 50 million cubic meters of natural gas, 80,000 barrels of condensates and 400 tons of sulfur a day. In addition, the phases are expected to produce each year one million tons of ethane for petrochemical feedstock and 1.05 million tons of liquefied petroleum gas for export. Iran hopes to boost gas output from 110 billion cubic meters a year in 2000 to 292 billion cubic meters in 2010. Gas accounts for about one third of Iran's domestic energy consumption. - AFP"


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