Iran welcomes Malaysian oil venture
Iran welcomes Malaysian oil venture
KUALA LUMPUR (Reuter): Iran is grateful that Malaysia decided to invest in its oilfields despite a possible threat of U.S. sanctions, Iranian Vice-President Hamid Mirzadeh said yesterday.
"We are grateful to Malaysia and we are happy that Petronas is involved together with a French oil company, Total, to develop our oilfields, especially since it decided to do so even after the sanction was announced," he told reporters after meeting Malaysian Deputy Prime Minister Anwar Ibrahim.
President Bill Clinton signed the Iran-Libya Sanctions Act on Aug. 5 that calls for sanctions to be imposed on non-U.S. firms that invest US$40 million or more a year in the oil and gas sectors of the two countries.
Two weeks later, the French oil group Total Sa said Petronas had taken a 30 percent stake in Iran's Sirri A and E fields through its Carigali subsidiary, in a deal approved by Iranian authorities. Petronas has not commented.
A U.S. Embassy spokesman said on Thursday that Washington had not made any decision on imposing sanctions on Malaysia over the Iranian investment.
"We are aware of these reports on Petronas' investment. The U.S. government is still determining the worldwide implementation of the Iran and Libya sanctions act," he said, declining further comment.
Malaysian Prime Minister Mahathir Mohamad has shrugged off the threat of possible sanctions.
"We know the general feelings of the U.S.," he told reporters on Aug. 21. "We are for working with the U.S. in certain matters, and where we disagree, we will not work with them.
"We feel we have the right to make our own national decision," Mahathir added.
Meanwhile, the U.S.-ASEAN Council, an American corporate group seeking business in Southeast Asia, said yesterday it opposes the sanctions act.
"The American manufacturing community doesn't see unilateral sanctions of this sort as productive or useful," said council member Howard Lewis.
ASEAN, or the Association of Southeast Asian Nations, groups Brunei, Malaysia, Singapore, Indonesia, the Philippines, Thailand and Vietnam.
Officials of 13 U.S. companies in the council are touring the region seeking business partners and opportunities.