Eni says work in Iran may be sanctionable

April 10, 2013 at 9:00 AM
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MILAN, Italy, April 10 (UPI) -- Italian energy company Eni declared that it could face economic sanctions from the U.S. government because of its operations in Iran.

"Eni is currently conducting oil and gas operations in Iran," the company said in a regulatory filing. "The legislation and other regulations of the United States that target Iran and persons who have certain dealings with Iran may lead to the imposition of sanctions on any persons doing business in Iran or with Iranian counterparties."

The company said it has been operating in Iran "for several years" through service contracts with the National Iranian Oil Co. The company's exploration and production projects in Iran are in the cost recovery phase and Eni said it hasn't made any further investments in Iran nor does it plan to make further capital expenditures there in future years.

Eni last year produced 3,000 barrels of oil equivalent from Iran, which represents less than 1 percent of its total production for the year. It doesn't export any of its products from Iran.

The Italian company said it has no guarantees from the U.S. State Department, but doesn't consider its actions in Iran sanctionable under current laws.

"If sanctions were imposed, their impact could be material and adverse to Eni," the company stated in its filing to the U.S. Securities and Exchange Commission.

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