Foreign Oil Companies Sanctioned

Tuesday, May 24, 2011
A message to oil companies (and other energy sector firms) that transact business with state-sponsors of terrorism.

From the State Department:

Secretary of State Hillary Rodham Clinton has decided to impose sanctions on seven companies under the Iran Sanctions Act (ISA) of 1996, as amended by the Comprehensive Iran Sanctions, Accountability, and Divestment Act (CISADA) of 2010, for their activities in support of Iran's energy sector.

- These companies are PCCI (Jersey/Iran), Royal Oyster Group (UAE), Speedy Ship (UAE/Iran), Tanker Pacific (Singapore), Ofer Brothers Group (Israel), Associated Shipbroking (Monaco), and PetrĂ³leos de Venezuela (PDVSA) (Venezuela).

- These are the first sanctions imposed by the United States for refined-petroleum related activities under ISA since it was amended by CISADA. By imposing these sanctions, the Secretary sends a stern and clear message to companies around the world: those who continue to irresponsibly support Iran's energy sector and help facilitate Iran's efforts to evade U.S. sanctions will face serious consequences.

PetrĂ³leos de Venezuela (PDVSA): PDVSA, the state-owned oil company of Venezuela, has delivered at least two cargoes of reformate to Iran between December 2010 and March 2011, worth approximately $50 million. Reformate is a blending component that improves the quality of gasoline. The sanctions we have imposed on PDVSA prohibit the company from competing for U.S. government procurement contracts, from securing financing from the Export-Import Bank of the United States, and from obtaining U.S. export licenses.