March 20, 2007

GAS BEING THE NEW BREAD:

U.S. tightens financial squeeze on Iran: But sanctions aimed at energy projects could anger Europe (Steven R. Weisman, March 20, 2007, International Herald Tribune)

For all of the U.S. efforts to apply economic and political pressure on Iran over its nuclear program, Washington has never used a potentially potent tool in its arsenal -- penalties on foreign companies that assist Iran in producing oil and natural gas.

That may be about to change. The United States has quietly been warning energy companies, including Royal Dutch Shell, Repsol and SKS, as well as the governments of China, India, Pakistan and Malaysia, that sanctions are possible if they pursue energy deals with Iran.

As a result, several huge projects planned for Iran could be vulnerable, including one possible $10 billion project planned by Shell and Repsol, the Spanish oil company, and another $20 billion venture by SKS, the Malaysian oil company, to produce natural gas in Iran's Golshan and Ferdows fields.

Posted by Orrin Judd at March 20, 2007 7:36 PM
Comments

That would really cheese India off.

They've identified the Iranian pipeline as a major plank of thier energy strategy.

Posted by: Ali Choudhury at March 21, 2007 1:55 AM

It'll flow as soon as Mahmood is gone.

Posted by: oj at March 21, 2007 6:27 AM
« SHOULDN'T IT BE CALLED HUPAS?: | Main | CONSIDER IT AN INTERVENTION: »