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.