In 2020, the U.S. state of Mississippi listed Royal Dutch Shell on its state lists of Companies Doing Business with the Iranian Petroleum/Natural Gas, Nuclear and Military Sectors, rendering it ineligible for investment and/or state contracting.
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On February 14, 2020, Iowa Public Employees' Retirement System removed Royal Dutch Shell from its list of Iran Prohibited Companies.
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"The company was reported as potentially seeking oilfield development opportunities in Iran. In 2018 CalPERS designated the company as under review. In 2019 CalPERS changed the designation to “being monitored” because CalPERS’ initial screening has not identified the company as having involvement in the regions and/or activities targeted by the Act. CalPERS has maintained the company in “monitor” status for 2020. CalPERS continues to monitor the company for possible changes in status relevant to the Act."
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According to a Quarterly Report filed with the SEC for fiscal year 2020: "In 2020, a 2017 payment of $101 was discovered for a meal between an employee of the RDS Group and an employee of National Iranian Gas Company (“NIGC”) and the NIGC employee’s wife that was not previously disclosed.
During the first quarter of 2020, the RDS Group paid $1,685 for the clearance of overflight permits for RDS Group aircraft over Iranian airspace. There was no gross revenue or net profit associated with these transactions. On occasion, RDS Group aircraft may be routed over Iran, and, therefore, these payments may continue in the future."
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According to its Annual Report filed with the SEC for fiscal year 2019: "In 2019, we paid fees for trademark renewals to the Iranian Intellectual Property Office in the amount of $1,583 and paid agent fees in the amount of $4,357 to Dr. Alexander Aghayan and Associates Law Firm for trademark renewal and legal services. Additionally, we discovered that in 2018 we paid fees in the amount of $1,861 for trademark renewals to the Iranian Intellectual Property Office and paid agent fees in the amount of $438 to Abardad International Law Office for trademark renewal and legal services, and paid additional agent fees in the amount of $262 to Brandstock Services AG in relation to trademark renewals. These payments may continue in the future. There was no gross revenue or net profit associated with these transactions.
In 2019, we paid $31,868 for the clearance of overflight permits for Shell aircraft over Iranian airspace. There was no gross revenue or net profit associated with these transactions. On occasion, our aircraft may be routed over Iran and therefore these payments may continue in the future."
We maintain accounts with Karafarin Bank, where our cash deposits (balance of $5,116,266 at December 31, 2019) generated non-taxable interest income of $223,391 in 2019, and we paid $5 in bank charges.
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In 2018 CalPERS designated the company as under review. In 2019 CalPERS changed the designation to “being monitored” because CalPERS’ initial screening has not identified the company as having involvement in the activities targeted by the Act. CalPERS will continue to assess and/or monitor the company for possible changes in status relevant to the Act.
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Royal Dutch Shell had previously been removed from the Iran-related securities list. In 2017, CalSTRS designated Royal Dutch Shell as “Under Review” for potentially having new ties to Iran. In 2018, CalSTRS designated Royal Dutch
Shell as “Being Monitored.” In 2019 CalSTRS removed Royal Dutch Shell after reviewing the company’s curtailment of business with Iran.
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Shell is listed as a partner of the Iranian firm, Chagalesh Consulting Engineers (“Chagalesh”). (Chagalesh Website, “About”).
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As of August 15, 2019, the state of Iowa listed Royal Dutch Shell on its Iran scrutinized companies list.
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"Royal Dutch Shell is not taking any British-flagged tankers through the Strait of Hormuz amid heightened tensions with Iran in the vital chokepoint for oil shipments." (Reuters, "Shell not taking British-flagged tankers through Hormuz," 8/1/2019).
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Royal Dutch Shell has reportedly signed preliminary agreements to develop oilfields in Iran. Royal Dutch Shell had previously been removed from the Iran related securities list. In 2017,CalSTRS designated Royal Dutch Shell as “Under Review” for potentially having new ties to Iran. In 2018, CalSTRS designated Royal Dutch Shell as “Being Monitored.” CalSTRS expects to meet with the company in 2019.
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Has halted purchases of Iranian crude oil. (Annmarie Hordern and Golnar Motevalli, "Iran Doesn't Expect Oil Customers to Get Sanctions Waivers," Bloomberg, June 22, 2018.)
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According to its Quarterly Report filed with the SEC for fiscal year 2018: "During the first quarter of 2018, the RDS Group settled a receivable of $10.5 million with the National Iranian Oil Company (“NIOC”) associated with its previous upstream activities conducted prior to the imposition of European Union sanctions against a payable for freight and ancillary services in relation to oil cargoes purchased in 2016. The net payable of $1.0 million was paid to NIOC in March 2018.
During the first quarter of 2018, the RDS Group paid $6,196 for the clearance of overflight permits for RDS Group aircraft over Iranian airspace and $6,352 for handling cost to the Iranian Civil Aviation Authority. There was no gross revenue or net profit associated with these transactions. On occasion, RDS Group aircraft may be routed over Iran and therefore these payments may continue in the future.
During the first quarter of 2018, RDS Group employees met with Iranian officials in Iran. In relation to these travelling RDS Group employees, $2,566 was paid to Iranian authorities for visas and exit fees; $62 was paid to Bimeh Insurance Company for travel insurance; and $180 was paid to Iranian airlines for flight tickets. The RDS Group also discovered $294 in travel visa costs in relation to Q4 2017 that were not previously disclosed. There was no gross revenue or net profit associated with these transactions. The RDS Group expects to continue discussions with Iranian officials and therefore similar payments may continue in the future.
During the first quarter of 2018, the RDS Group provided downstream retail services to the Iranian Embassy in Switzerland and to the International Islamic Liquidity Management Corporation in Malaysia. These transactions generated gross revenue of $1,370 and an estimated net profit of $80. The RDS Group has no contractual agreement with these parties."
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In 2017 the U.S. state of California listed Royal Dutch Shell as a company under review for reportedly signing preliminary agreements to develop oilfields in Iran.
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In 2018 the U.S. state of Iowa listed Royal Dutch Shell as an Iran restricted company rendering Royal Dutch Shell ineligible for investment and/or state contracting.
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According to its Quarterly Report filed with the SEC in 2017: "As a result of the suspension of U.S. and European Union (EU) sanctions, the RDS Group is considering potential opportunities in Iran and, in September 2016, opened an office in Iran.
The RDS Group maintains accounts with Bank Karafarin, where its cash deposits (balance of $2.8 million at March 31, 2017) generated non-taxable interest income of $0.1 million in the first quarter of 2017. The RDS Group paid Bank Karafarin $8 in bank charges in the first quarter of 2017.
At March 31, 2017, the RDS Group has a receivable of $10.5 million outstanding with the National Iranian Oil Company (“NIOC”) associated with the RDS Group’s previous upstream activities conducted prior to the EU sanctions.
In December, 2016, RDS Group subsidiary Shell Eastern Trading (Pte) Ltd (SETL) purchased two cargoes of crude oil from NIOC for $103 million and $106 million, respectively. Both cargoes were paid for in February 2017. These cargoes were subsequently sold to an RDS Group refinery, resulting in net profits of $1.6 million and $1.8 million, respectively. The RDS Group intends to continue to consider business opportunities with NIOC, including the purchase and trading of crude oil.
During the first quarter of 2017, the RDS Group paid $990 to the Iranian Civil Aviation Authority for the clearance of overflight permits for RDS Group aircraft over Iranian airspace. There was no gross revenue or net profit associated with these transactions. On occasion, RDS Group aircraft may be routed over Iran and therefore these payments may continue in the future.
During the first quarter of 2017, RDS Group employees met with Iranian officials in Iran. In relation to these travelling RDS Group employees, $5,282 was paid to Iranian authorities for visas, airport services and exit fees, $45 was paid to Bimeh Insurance Company for travel insurance, $1,253 was paid to Iranian airlines for flight tickets, and $298 was paid to Iranian hotels. The RDS Group also discovered $224 in travel visa costs in relation to 2016 that was not previously disclosed. In addition, the RDS Group paid $13,875 in conference registration fees for conferences attended by RDS Group employees. The conferences attended are Petroleum Conference - Iran 2017, Iran Renewable Energy Commercial Conference and Iranian Petroleum and Energy Club Congress and Exhibition. There was no gross revenue or net profit associated with these transactions. The RDS Group expects to continue discussions with Iranian officials and therefore similar payments may continue in the future.
In the first quarter of 2017, through the RDS Group subsidiary Deheza S.A.I.C.F.el., the RDS Group provided downstream retail services to the Iranian Embassy in Argentina. This transaction generated gross revenue of $156 and an estimated net profit of $22. The RDS Group has no contractual agreement with this embassy."
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In 2017 the U.S. state of Mississippi and South Carolina listed Royal Dutch Shell on its Iran restricted companies list rendering Royal Dutch Shell ineligible for investment and/or state contracting.
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In 2016 and 2017 Tennessee used the South Carolina list of "Entities Ineligible to Contract with the State of South Carolina or any Political Subdivision of the State per the Iran Divestment Act of 2014, S.C. Code Ann." as its list of persons it determines engage in investment activities in Iran. Royal Dutch Shell was included on this list in 2016. "Inclusion on this list would make a person ineligible to contract with the state of Tennessee, if a person ceases its engagement in investment activities in Iran, it may be removed from the list."
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In 2017, we agreed to extend the term of a memorandum of understanding and a separate confidentiality agreement, each originally signed in 2016, with NIOC to cover a joint review of a number of oil and gas opportunities.
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According to its Quarterly Report filed with the SEC in 2016: "In 2010, the RDS Group ceased all of its upstream commercial activities in Iran and suspended new business development in Iran, as a direct consequence of the international sanctions imposed on the country. In 2013, the RDS Group closed its small representative office in Iran. However, as a result of the suspension of US and European Union (EU) sanctions, the RDS Group is currently considering potential opportunities in Iran.
The RDS Group maintains accounts with Bank Karafarin, where its cash deposits (balance of $3.1 million at March 31, 2016) generated non-taxable interest income of $0.1 million in the three months ended March 31, 2016.
During the three months ended March 31, 2016, the RDS Group paid $224 in stamp duties to the Iranian Ministry of Finance, thorugh its Iranian accountant Bayat Rayan.
Payments to the Iranian Civil Aviation Authority for the clearance of overflight permits for RDS Group aircraft over Iranian airspace amounted to $2,052 during the three months ended March 31, 2016. There was no gross revenue or net profit associated with these transactions. On occasion, RDS Group aircraft may be routed over Iran and therefore these payments may continue in the future.
During the three months ended 2016, RDS Group officials met with Iranian officials in Iran. In relation to these travelling RDS Group officials, an amount of $1,777 was paid to the Iranian Authorities for visas and exit fees. An amount of $16 was paid for travel insurance to Bimeh Insurance Company. There was no gross revenue or net profit associated with the above transactions. The RDS Group expects to continue discussions with Iranian officials and therefore similar payments may continue in the future.
After the suspension of US and EU sanctions, the RDS Group made a series of payments in February and March 2016, totaling $1.942 million, to settle the payable amount for oil cargoes purchased from the National Iranian Oil Company (“NIOC”) prior to EU sanctions.
At March 31, 2016, the RDS Group has the following amounts outstanding with NIOC: a net payable of $0.4 million in respect of demurrage and a receivable of $10.5 million associated with the RDS Group’s previous upstream business activities conducted prior to EU sanctions. The RDS Group intends to resolve these outstanding balances at the earliest possible time.
In its downstream business, through RDS Group subsidiary Deheza S.A.I.C.F.el., the RDS Group provided retail services during the three months ended March 31, 2016 to the Iranian Embassy in Argentina. These transactions generated gross revenue of $174 and an estimated net profit of $14. The RDS Group has no contractual agreement with this embassy."
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"Royal Dutch Shell has bought only three cargoes of Iranian oil since sanctions were eased a year ago, a small fraction of what it used to buy and an indication of the legal difficulties and high prices that still hamper the trade. The Anglo-Dutch firm did not give a reason for the drop in purchases, which were disclosed in its annual report, and the company declined to comment further. But oil trading sources say Iranian oil is often too expensive and in any case remaining sanctions make dealing with the Islamic Republic a legal minefield. As an example of sanctions-related difficulties, Shell's filings showed it had to disclose payments of only a few hundred dollars when its employees bought tickets with Iranian airlines. After an accord was reached over Iran's nuclear program, the European Union eased sanctions on Iran in January 2016 and the United States lifted some restrictions on dollar trade, moves that have allowed Iran to raise its oil exports sharply." (Reuters, "Despite Sanctions Relief, Shell Still Cool On Iranian Oil Buys," 3/10/2017).
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"The National Iranian Oil Company has signed new spot oil export contracts with BP and the Anglo-Dutch Royal Dutch Shell to provide them with oil and gas condensates, director for international affairs at NIOC said on Wednesday... A spot contract is a deal for buying or selling a commodity for settlement (payment and delivery) on the spot date, which is normally two business days after the trade date. A spot contract is in contrast with a forward contract where terms are agreed now but delivery and payment will occur at a future date." (Financial Tribune, "Iran Signs Spot Contracts with Shell, BP," 12/29/2016).
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"Royal Dutch Shell PLC on Wednesday said it had signed an agreement with Iran’s state oil company to explore future projects, signaling that giant energy companies are unlikely to be deterred by President-elect Donald Trump’s pledge to undo the Iran nuclear deal. Shell is the largest company to wade back into Iran since the U.S. and other world powers lifted sanctions in January in exchange for Tehran putting strict limits on its nuclear program. The British-Dutch firm follows France’s Total SA, which last month signed a $4.8 billion deal to develop a large natural-gas field in Iran and now is negotiating an oil deal... The scope of Shell’s deal remains unclear. A Shell spokesman said the firm and the National Iranian Oil Co. signed a memorandum of understanding to “further explore areas of potential cooperation.” The agreement is nonbinding and doesn’t come with an investment commitment, unlike Total’s deal. Earlier on Wednesday, the Iranian oil ministry said it and Shell were examining agreements to develop two large oil fields that could give a big boost to the country’s output. Shell didn’t confirm those talks. Shell has said it would proceed with caution as it mulls re-entering Iran... Iran’s oil ministry said Shell was interested in developing the South Azadegan and Yadavaran oil fields and the Kish gas field." (The Wall Street Journal, "Shell Signs Preliminary Iran Oil Deal Despite Uncertainty Over Trump," 12/7/2016).
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"Royal Dutch Shell confirmed Monday that it had signed an initial deal with Iran's National Petrochemical Company, paving the way for its return to the Islamic republic. "We can confirm that we have expressed our interest to further explore potential areas of cooperation with the National Petrochemical Company through a letter of intent," a spokesman for the Anglo-Dutch energy giant told AFP. Iran's Shana news agency, which is linked to its oil ministry, said the deal had been signed in Tehran on Sunday. Hans Nijkamp, Shell's vice president, attended the signing ceremony and told Shana that the company was seeking "a long-term presence in Iran". "We first need to see what are the areas where we think we can work together and then work out what commercial structures we use, what technical solutions, and ultimately you will indeed end up with a sort of a joint venture agreement," he said. "But it is too early today to put any timeline on that. We are very pleased that Iran is coming back to be a part of the global community. But it is still a fragile situation," he added, according to Shana." (AFP, "Royal Dutch Shell signs initial deal to return to Iran," 10/10/2016).
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"Iran has sold its first cargoes of natural gas condensate and crude oil to British companies...So far NIOC has sold two cargos of crude oil and gas condensate to two British companies," Ghamsari said, without naming the second company... Ghamsari said negotiations are underway for NIOC to sign long-term contracts with BP and Royal Dutch Shell, Mehr reported." (Reuters, "Iran sells first cargoes of oil, condensate to British companies - Mehr news," 10/3/2016).
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In 2015 Royal Dutch Shell was removed from Pennsylvania Treasury's List of Scrutinized Companies Determined as Having Involvement In Iran because the company's "involvement in purchases of crude oil falls uner the waivers granted by the U.S. government that meet Section (a)(2) of Act 44's expiration clause."
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According to a Quarterly Report filed with the SEC for fiscal year 2013: "In 2010, the RDS Group ceased all of its upstream commercial activities and suspended new business development in Iran, as a direct consequence of the international sanctions imposed on the country.
In 2013, the RDS Group closed its small representative office in Iran. In February 2014, the RDS Group paid approximately $5,620 as final settlement of corporate income tax related to the financial year ended December 31, 2007. The payment was made through a cheque guaranteed by Bank Karafarin, where the RDS Group maintains accounts. This transaction did not generate gross revenue or net profit. However, the RDS Group’s cash deposits in Bank Karafarin (balance of $3.0 million at September 30, 2014) generated non-taxable interest income of $0.4 million in the first nine months of 2014. In the future, the RDS Group expects to make additional payments as a result of the ongoing liquidation process, including tax payments.
Payments to the Iranian Civil Aviation Authority for the clearance of overflight permits for RDS Group aircraft over Iranian airspace amounted to approximately $1,830 during the first nine months of 2014. There was no gross revenue or net profit associated with these transactions. On occasion, RDS Group aircraft may be routed over Iran and therefore these payments may continue in the future.
In the downstream business, through the RDS Group subsidiary Deheza S.A.I.C.F.eI., the RDS Group provided retail services in August 2014 to the Iranian embassy in Argentina (Embajada de la República Islámica de Irán). This transaction generated a gross revenue of $63 and an estimated net profit of $6. The RDS Group has no contractual agreement with this embassy.
At September 30, 2014, the RDS Group has approximately $2,246 million payable to, and $12 million receivable from, the National Iranian Oil Company. The payable amount decreased by $183 million during the first nine months of 2014 as a result of currency movements. There was no change in the principal amount. The RDS Group is unable to settle the payable position as a result of applicable sanctions."
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In 2013, Royal Dutch Shell was added to the Pennsylvania Treasury's List of Scrutinized Companies Determined as Having Involvement in Iran because of oil-related investment of US $20 million since 1996.
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In 2011 Royal Dutch Shell was removed from Pennsylvania Treasury's List of Scrutinized Companies Determined as Having Involvement In Iran after it was determined to have past involvement.