By LIAM MOLONEY
Eni SpA, Italy's biggest oil and natural
gas company by volume, said Wednesday its activities
in Iran may face US sanctions against investments in the
Islamic republic, and they could be material.
Eni said, in its 2012 annual report, that it doesn't believe
its activities in Iran are sanctionable under current US
rules but notes it has no formal assurances from the US State
"If sanctions were imposed, their impact could be material
and adverse to Eni," said the Rome-based company.
Eni has operated in Iran for several years as part of four
service contracts: South Pars, Darquain, Dorood and Balal. Eni
said all the projects have been completed with
the exception of Darquain, which is in the process of final
commissioning and is being handed over to the national Iranian
The Italian company's projects in Iran are in the
cost-recovery phase, and it adds it has no plans to make
further capital expenditure in the country in future years.
Eni's daily output in Iran averaged 3,000 bbl of oil
equivalent in 2012, representing less than 1% of the company's
Eni said its refining and marketing division
bought 498,000 metric tons of Iranian crude in 2012, paying the
country's state oil company $396 million, less than the $742
million it paid for the 976,000 tons the year before.
Eni hasn't any involvement in Iran's refined petroleum
sector and doesn't export refined products to Iran, it
Dow Jones Newswires