Weighing up the risk: Statoil boss Helge Lund
Statoil weighs US sanctions risk
Norwegian giant Statoil has warned it could face US sanctions because of its activities in Iran, adding it risked losing 171 million barrels of oil reserves if a "worst case scenario" - the confiscation of its Venezuelan assets - came to pass as Caracas steps up its nationalisation programme.
In an annual filing to the US Securities & Exchange Commission released late last night, Statoil said its 2002 deal to help develop Iran's South Pars gas project may be judged to breach the United States' Iran Sanctions Act (ISA).
"It is possible the US may determine that these or other activities will constitute activity covered by ISA and will subject us to sanctions," Statoil said.
At the end of last year, Statoil, which is led by Helge Lund, had invested $394 million in South Pars.
Statoil spokesman Ola Morten Aanestad said the report did not constitute a change in Statoil's perceived risk in Iran.
Iran has been a major headache for Statoil in the past. In 2003 Statoil's chairman, chief executive and head of international operations resigned amid a scandal over payments to Iranian consultants that Norwegian police deemed bribes.
Statoil also detailed potential losses in Venezuela, where President Hugo Chavez's nationalisation plans threaten the operations of international oil companies.
The Norwegian player has a 15% stake in the Sincor heavy oil development in Venezuela, which if confiscated without compensation could cut the company's total proven reserves.
Venezuela has issued a decree to transform Sincor into a joint venture with at least a 60% state stake. France's Total has 47% of the project.
"The maximum adverse impact on proved reserves is currently estimated to 171 million barrels of oil," Statoil told the SEC.
Statoil said the transfer will be completes by 1 May, adding the law grants a period of four months to agree on the terms and conditions for participation in the new mixed companies.
"The specifics and extent of such a transaction for Sincor and the level of compensation to be received by Statoil cannot be ascertained at this time," the company said.
Aanestad said the calculation was a "worst case scenario" and Venezuela has said it would compensate foreign oil companies for reducing their stakes in oil and gas projects.
"We are telling the market what our total SEC reserves on this projects is," he said.