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Exxon denies reports on review of U.S.-Iranian ties

Iran has said it's expecting U.S. interest in its oil once sanctions are lifted.

By Daniel J. Graeber

WASHINGTON, May 22 (UPI) -- Exxon Mobil said Friday reports that it was lobbying the U.S. government on sanctions imposed on Iran are inaccurate.

"Exxon Mobil is not lobbying on Iran sanctions," Ken Cohen, Exxon's vice president of Public and Government Affairs, said in a statement. "Erroneous media reports resulted from errors in a consultant's lobbying disclosures. Current U.S. law prohibits American companies from operating in Iran."

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Bloomberg news reported Exxon hired a lobbying company, the Nickels Group, formed by former Sen. Don Nickles, R-Okla. to monitor Iranian sanctions measures.

"We are not lobbying on Iran sanctions," Alan Jeffers, an Exxon spokesman, told Bloomberg. "We are monitoring activities related to Iran in the U.S. government."

Nickles served as Senate Whip and chairman of the Senate Committee on the Budget before leaving office in 2005. Bloomberg reports Exxon's work with the Nickles Group is the first time since 2010 it hired a lobbying firm to review issues with Iran.

The Iranian government in early May said representatives from the United States were among those expected to attend an international investment conference in Tehran. If sanctions are lifted, Iran can expect "the presence of major international U.S. oil and gas companies," an official in the Iranian Oil Ministry said.

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The Iranian government is pressing for more sanctions relief from a framework agreement slated to take force in mid-2015.

Iranian Oil Minister Bijan Zangeneh said in early April the Islamic republic could return as a dominant force in the Organization of Petroleum Exporting Countries once the nuclear deal is formalized. Iran holds the third-largest proven oil reserves among OPEC member states, behind Venezuela and Saudi Arabia, respectively.

Iran is limited to around 1 million barrels of oil per day in exports under the terms of a November 2013 deal with international powers. Exports could double if all sanctions are released later this year.

Nickles was quoted by Bloomberg as saying his firm was not working directly on issues related to Iranian sanctions.

"We are not influencing or advocating in any way on Iran sanctions; our work with regard to Iran has involved only monitoring legislative activity in the U.S. Congress dealing with that sanctions regime," he said.

U.S. State Department spokesman Jeff Rathke said Iran is not "open for business yet."

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