Italian energy group, Eni, appears set to seal an oilfield contract with Iran in what will be the first test of extra-territorial US sanctions under the presidency of George W Bush, reported the Gulf Daily News.
Industry sources in London said Eni chief executive Vittorio Mincato was scheduled to sign a $400 million deal to develop the Dharkovin field in Tehran on Saturday.
The signing ceremony was postponed twice in recent months because of last-minute changes to the contract the latest in a series by Tehran since the Islamic republic reopened to foreign investors, said the paper.
European and Asian oil companies since then have secured a number of projects with Iran and are lining up for more, undeterred by the 1996 US Iran-Libya Sanctions Act.
The act is expected to be renewed soon for another five years.
But the Clinton administration, under pressure from the European Union, decided against pursuing companies like French Total and Shell and Eni that now are Iran’s biggest investors.
The oil industry believes President George W Bush will not want to risk friction with the EU by attempting to punish European companies.
Total was the first to make the breakthrough in Iran. Eni, too, is already a big player with stakes in developments of the Doroud and Balal oilfields and the South Pars gas-field.
More contracts are in the pipeline with particular interest surrounding the huge Bangestan development, for which Shell, Total, BP and Eni all are pursuing, the paper added – Alawaba.com
