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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: Greywolf who wrote (2612)	7/4/2001 10:24:44 PM
From: Tomas	Read Replies (1) \| Respond to of 2742

Eni defies US and invests in Iran oil Lloyds List, July 2 BY DAVID OSLER ITALY'S Eni has become the latest oil major to push ahead with plans to invest in Iran, openly challenging US opposition to commercial relations with Tehran. The company has signed a Dollars 550m deal with the Iranian government to develop the Darkhovin oilfield. But industry observers believe that the Iran Libya Sanctions Act (ILSA) - which threatens sanctions against any firm investing over Dollars 20m in the oil and gas sectors of Iran and Libya - will prove as much a dead letter under George Bush as it did under Bill Clinton. Eni, TotalFinaElf and Royal Dutch/Shell have all flouted the ban in the past. In 1998, President Clinton waived sanctions on a Dollars 2bn deal, including Total and two other companies. Some 18 months ago, Iran signed a deal with Royal Dutch/Shell for the Soroosh and Nowrooz fields. Meanwhile, Spain's Cepsa is seeking a deal to cover the Cheshmeh Kosh oilfield. Any moves to punish Eni would be likely to outrage the European Union. Moreover, further deals are already in the pipeline, with European companies the early front-runners in the race for the contacts. Three European companies, Eni, Shell and Total, are in the running for a multi-billion dollar project in Bangestan, and there is talk in the industry of them forming a consortium to handle the work. For its part, the EU is prepared to flex its muscles on behalf of its members. Any attempt by Washington to pursue a European company under ILSA could harm relations with Europe. Such a strengthened commercial-political axis between Iran and Europe may cause anxiety for US oil firms, locked out of Iran's energy race since 1995 by presidential order. US oil executives have lobbied hard against the sanctions, but to some extent, their activities have proved too little, too late. Eni's signing is significant also as it is the first so-called buy-back deal under revised Iranian investment terms. The National Iranian Oil Company (NIOC) has faced criticism over buy-back terms, which pay foreign investors with oil production. Some Iranian members of parliament argue that the deals favoured foreign investors. NIOC modified the terms by offering foreign players a risk-reward element based on production guarantees. Eni has already secured buy-back deals at Iran's Balal and Doroud oil fields and is involved in gas via South Pars phases 4-5.