With the price of a barrel of oil beyond $100 per drum, global oil powerhouse Royal Dutch Shell is raking in some serious coin. But while Shell is bringing in the big bucks, it still cannot pay one very important client.

Bloomberg is citing four sources who claim that Shell is finding it difficult to pay Iran about $1 billion due to financial sanctions put in place by the United States and Europe. The bill is reportedly the result of about eight million barrels of oil. On January 23, the European Union placed the ban on oil from Iran, but gave companies until July to wind down business with the world's second-largest producer of oil.

Shell is in a tough spot because it is stuck between obeying sanctions aimed at forcing Iran to scrap its nuclear program and paying the National Iranian Oil Co, which supplies about 100,000 barrels of crude daily. But while Shell is at risk of angering Tehran, other oil companies stopped getting oil from Iran months ago.

It doesn't appear that it will be easy for Shell to pay its bill, but there may be a way. Bloomberg reports that the oil giant could approach the British government to help settle the debt.


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  • 40 Comments
      jkennedy293
      • 2 Years Ago
      Doesn't anyone proofread anymore?
        karman876
        • 2 Years Ago
        @jkennedy293
        Why proofread it yourself, when you get get your personal army of proofreaders to do it for you!
      Justin
      • 2 Years Ago
      on the title ... it's "Iran" .. not "Iraq"
      axiomatik
      • 2 Years Ago
      headline says Iraq...
      Weels
      • 2 Years Ago
      shouldn't this be to iran?
      Kevin Gregerson
      • 2 Years Ago
      If shell didn't have the foresight to stop paying months ago then its too late. They will simply have to put the money into a holding account until sanctions have been dropped and they can pay. Or, they could purchase food supplies equivalent to 1 billion dollars after shipping as a donation and ship to Iran's people.
        creamwobbly
        • 2 Years Ago
        @Kevin Gregerson
        I see what you're thinking, but in-kind payments are not donations. It frees up $1bn for Iran to spend elsewhere, and still constitutes a potential threat, according to the line touted by Western governments. (Not that I disbelieve them, but after last time, I don't swallow what they feed me, either.)
      A_Guy
      • 2 Years Ago
      Another comment about Iraq/Iran.
      StegRacing@youtube
      • 2 Years Ago
      Surely RDS have a 'division' in another country without sanctions?
        StegRacing@youtube
        • 2 Years Ago
        @StegRacing@youtube
        Besides, a bill is a bill no matter who it is for. Pay it, and then impose the sanctions on new business.
      over9000
      • 2 Years Ago
      if we weren't gone into Iraq we wouldn't have this problem. Thanks Bush.
        Frank
        • 2 Years Ago
        @over9000
        If you read any news or paid attention you would know that *IRAN* has been trying to get a nuke for many years now. Despite what Ron Paul says Bush or the US had nothing to do with that countries desire to go nuclear. And IRAQ? They were working on it too. If not for the Israeli raid in 1982 that blew up their nuke facility they would have gone nuclear way before Bush ever became president.
          Frank
          • 2 Years Ago
          @Frank
          "Eduardo" - when that mushroom cloud goes off who will be the real jackass? Even the Obama administration believes that Iran is developing nukes. Dumbass.
      Durrr
      • 2 Years Ago
      Royal Dutch Shell should have no problem paying their bills;they made 31.2 billion in profits last year.
        Matt
        • 2 Years Ago
        @Durrr
        Read the damn article. Durrrrrrrr
        Tall Tex
        • 2 Years Ago
        @Durrr
        It's not an issue of having the money, it's an issue of sanctions (in this case UK) against the country preventing them from paying the money. If RDS pays Iran directly, they are violating UK sanctions on Iran and can face some serious penalties.
      Russell Ford
      • 2 Years Ago
      Good job on getting the country right.
        Kumar
        • 2 Years Ago
        @Russell Ford
        Not surprising since some 60% of Americans can't even find Iraq OR Iran on a map.
          caddy-v
          • 2 Years Ago
          @Kumar
          Put a blank map of the US in front of those 60% ers and I'll bet the farm 60% of them couldn't identify the state they live in.
      Frank
      • 2 Years Ago
      This blog's quality has now slipped to the levels of what Chrysler's interiors USED to be. [facepalm]
      joeboarder108
      • 2 Years Ago
      Iran, Iraq, same diff
        Matt
        • 2 Years Ago
        @joeboarder108
        I caught the humor there. At least autoblog fixed it
        MarbleKnight
        • 2 Years Ago
        @joeboarder108
        No it's not the same, they are different countries - Arabs and Persians. Get it right, brat.
          Matt
          • 2 Years Ago
          @MarbleKnight
          He was referencing how Autoblog had originally titled the article IraQ not IraN...but they have since fixed that mistake. Take a chill pill Marbleknight.
        Daniel D
        • 2 Years Ago
        @joeboarder108
        Thats like saying US/Canada/Mexico are all the same. Time to learn something.
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