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GAO-11-855R: 

August 3, 2011: 

Congressional Committees: 

Subject: Firms Reported in Open Sources as Having Commercial Activity 
in Iran's Oil, Gas, and Petrochemical Sectors: 

Iran's economy and government are reliant on revenues from its oil and 
gas industry. According to the 2011 Central Intelligence Agency World 
Factbook, oil accounts for approximately 80 percent of Iran's exports, 
and, according to the International Monetary Fund, Iran's 2009 oil 
revenues were about 66 percent of the Government of Iran's revenues. 
[Footnote 1] According to the Department of Energy (DOE), Iran ranks 
among the top three holders of proven oil and natural gas reserves in 
the world, and is one of the largest exporters of crude oil in the 
world. While Iran continues to produce significant amounts of crude 
oil, its peak production occurred in 1978 and has not been matched 
since then because of a high rate of natural decline in mature oil 
fields, limited investment, and sanctions. IHS Global Insight found 
that the oil sector will require approximately $25 billion in annual 
investments to maintain existing production and considerably more to 
develop and enhance recovery techniques that would lift Iran's daily 
output to 5.8 million barrels by 2015.[Footnote 2] While Department of 
State (State) officials state that sanctions have an impact on Iran, 
the Iranian government continues its attempts to increase the 
development of its oil and gas sectors through foreign investment. 

U.S. law restricts U.S. firms from investing in Iran's energy sector 
through a variety of sanctions administered by the Department of the 
Treasury to discourage Iran from supporting terrorism and developing 
nuclear weapons.[Footnote 3] In addition, the Iran Sanctions Act, as 
amended, provides for sanctions against persons, including foreign 
firms, who invest more than $20 million in Iran's energy sector. 
[Footnote 4] The Comprehensive Iran Sanctions, Accountability and 
Divestment Act (CISADA) of 2010 added new activities for which 
entities can be sanctioned under the Iran Sanctions Act.[Footnote 5] 
In March 2010, we identified 41 firms with commercial activity in 
Iran's oil, gas, and petrochemical sectors, based on reliable open 
source reporting.[Footnote 6] The Senate Committee on Armed Services 
directed that we update this report.[Footnote 7] We also reported 
recently on companies that export sensitive technology to Iran and are 
currently working on a report of companies that sell refined petroleum 
products to Iran.[Footnote 8] 

In response to the Senate committee directive, this report (1) 
provides a list of companies reported to have commercial activity in 
Iran's oil, gas, and petrochemical sectors between January 2010 to May 
2011 and companies reported to have withdrawn from commercial activity 
in Iran, and (2) identifies which of those companies have contracts 
with the U.S. government. We define commercial activity as having 
signed an agreement to conduct business, invested capital, or received 
payment for the provision of goods or services in the Iranian oil, 
gas, or petrochemical sectors. We identified the companies that 
reported having contracts, agreements, and memorandums of 
understanding to conduct commercial activity in Iran, but we did not 
determine whether these contracts or agreements represented binding 
agreements. We did not review the contracts and documents underlying 
the reported transactions and did not independently verify the 
transactions. We did not attempt to determine whether the activities 
of the firms in this list meet the legal criteria for sanctionable 
activities under the Iran Sanctions Act. Nor did we attempt to 
determine whether these activities commenced before or after the 
passage of CISADA. The Secretary of State is responsible for making 
such determinations. 

To accomplish our objectives, we reviewed open source information, 
including industry and trade publications, corporate reports and 
statements, and Securities and Exchange Commission (SEC) filings. We 
included a firm on our list if at least three reputable industry 
publications or the firm's corporate statements reported the firm to 
have signed an agreement to conduct business; invested capital; or 
received payment for providing goods or services in connection with a 
specific Iranian oil, gas, or petrochemical project. We provided the 
firms an opportunity to comment on our findings. While we corroborated 
information from a U.S. intelligence agency, we only used open source 
data for this report. To determine the companies that also had 
contracts with the U.S. government, we searched the Federal 
Procurement Data System-Next Generation (FPDS-NG), the primary 
government wide contracting database since 1978, for active contracts 
from January 2010 to May 2011. We first searched in FPDS-NG for firms 
identified as having commercial activity in Iran. We then corroborated 
the information in FPDS-NG on the firms by obtaining U.S. contracts 
and other evidence that confirmed the existence of contracts with 
these firms. See enclosure I for a full description of our scope and 
methodology. 

We conducted our work from April 2011 to July 2011 in accordance with 
all sections of GAO's Quality Assurance Framework that are relevant to 
our objectives. The framework requires that we plan and perform the 
engagement to obtain sufficient and appropriate evidence to meet our 
stated objective and discuss any limitations in our work. We believe 
that the information and data obtained, and the analysis conducted, 
provide a reasonable basis for any findings and conclusions. 

Summary: 

Using open source information, we identified 16 foreign firms that had 
commercial activity in Iran's oil, gas, and petrochemical sectors from 
January 2010 through May 2011, including 2 firms not listed in our 
prior report. According to our review of reliable open sources, 
foreign firms have significantly decreased commercial activity in 
Iran's oil, gas, and petrochemical sectors since we last 
reported.[Footnote 9] Twenty of the 41 firms listed in our 2010 report 
declared in their public reporting or in letters to GAO, which were 
also confirmed by State, that they have withdrawn or are withdrawing 
from commercial activity in Iran's energy sector. The companies that 
withdrew from Iran cited several reasons for ceasing activity, 
including sanctions imposed by the U.S. government, as well as other 
international organizations, and the difficulty associated with 
conducting business with Iran. According to Oil and Gas Journal, 
Iran's oil production could fall by more than 25 percent over the next 
5 years because of a lack of investment in the country's energy 
sector. However, IHS Global Insight and DOE report that Indian and 
Chinese state oil companies have increased interest in the 
construction of Iranian refineries, and Iran is looking to India and 
China to increase development of oil exploration and production. 

Of the 16 foreign firms identified as having commercial activities in 
the oil, gas, and petrochemical sectors in the latest review period, 
two firms have U.S. government contracts totaling approximately $4 
million in obligated funds. In comparison, our 2010 report found that 
the U.S. government obligated almost $880 million in contracts to 7 of 
the 41 firms having commercial activity in the Iranian energy sectors 
between 2005 and 2009. However, by May 2011, 5 of these 7 companies 
had withdrawn from commercial activity in Iran's energy sector. 

We are making no recommendations in this report. 

Background: 

Iran's involvement in illicit nuclear activities, its support for 
terrorism, and abuse of human rights have led the United States and 
other countries to impose sanctions to curb these activities. U.S. law 
has restricted U.S. and foreign firms from investing in Iran's energy 
sector through a variety of sanctions administered since 1987. 
According to the Department of State, these measures are designed to: 

(1) block the transfer of weapons, components, technology, and dual-
use items to Iran's prohibited nuclear and missile programs; 

(2) target select sectors of the Iranian economy relevant to its 
proliferation activities; and: 

(3) induce Iran to engage constructively, through discussions with the 
United States and other countries, to return to compliance with its 
nonproliferation obligations. 

The Iran Sanctions Act of 1996 (ISA), as amended, included sanctions 
on businesses or individuals engaging in certain transactions related 
to Iran's energy sector, intended to limit the development of Iran's 
ability to explore for, extract, refine, or transport by pipeline 
petroleum resources of Iran.[Footnote 10] On July 1, 2010, CISADA was 
enacted,[Footnote 11] adding new activities for which entities can be 
sanctioned under the 1996 act, including sanctions on companies 
involved in the development of Iran's energy sector.[Footnote 12] ISA, 
as amended by CISADA, provides for sanctions to be imposed on 
companies that are determined to have made investments of over $20 
million in Iran's energy sector.[Footnote 13] The amended ISA also 
imposes sanctions for the sale of a specified market value of refined 
petroleum products to Iran as well as the sale, lease, or provision of 
goods or services of a specified market value that could directly and 
significantly facilitate the maintenance or expansion of Iran's 
domestic production of refined petroleum products.[Footnote 14] The 
President, who delegated authority under the act to the Secretary of 
State, may waive the imposition of sanctions for these activities. 
State is the agency primarily responsible for implementing the 
provisions of the Iran Sanctions Act and CISADA, which target Iran's 
energy sectors. 

Sixteen Foreign Firms Had Commercial Activity in Iran's Oil, Gas, or 
Petrochemical Sectors from January 2010 to May 2011, according to Open 
Sources: 

Sixteen Firms Had Commercial Activities in Iran's Energy Sector: 

On the basis of our review of open source information, we identified 
16 foreign firms that had commercial activity in the development of 
the Iranian oil, gas, and petrochemical sectors between January 1, 
2010, and May 30, 2011. Of these 16 companies, we identified 2 that 
were not in our 2010 report. In addition, 20 of the 41 firms we 
identified in our 2010 report are now reported to have withdrawn or 
intend to withdraw from commercial activity in Iran. These firms 
indicated their intentions to withdraw or plans to withdraw through 
their own public reporting or letters to GAO, as confirmed by State. 
We could not find sufficient open source information on 7 other 
companies we identified in 2010 to determine whether or not they had 
continued commercial activities in Iran's oil, gas, or petrochemical 
sectors. The firms we identified in March 2010 and any update in the 
status of their activities since January 2010 are listed in table 
1[Footnote 15]. See enclosure II for a detailed description of the 
firms' commercial activities in Iran. We did not attempt to determine 
whether the activities in this list meet the legal criteria for 
sanctionable activities under the Iran Sanctions Act. The Secretary of 
State is responsible for making such determinations. 

Table 1: Comparison of Foreign Firms Reported to Have Commercial 
Activity in Iran's Oil, Gas, or Petrochemical Sectors for the Periods 
2005 to 2009 and 2010 to 2011. 

Firm: 1. Belneftekhim/Belarusneft; 
Country[A]: Belarus; 
Sector: Oil exploration and production; 
2005-2009 status: Active; 
2010-2011 status: Active. 

Firm: 2. China National Offshore Oil Corporation; 
Country[A]: China; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Active. 

Firm: 3. China National Petroleum Corporation; 
Country[A]: China; 
Sector: Oil exploration and production, natural gas; 
2005-2009 status: Active; 
2010-2011 status: Active. 

Firm: 4. Daelim; 
Country[A]: South Korea; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Active. 

Firm: 5. Edison; 
Country[A]: Italy; 
Sector: Oil exploration and production; 
2005-2009 status: Active; 
2010-2011 status: Active. 

Firm: 6. Hyundai Heavy Industries; 
Country[A]: South Korea; 
Sector: Refining; 
2005-2009 status: Active; 
2010-2011 status: Active. 

Firm: 7. INA; 
Country[A]: Croatia; 
Sector: Oil exploration and production, natural gas; 
2005-2009 status: Active; 
2010-2011 status: Active. 

Firm: 8. Indian Oil Corporation Ltd.; 
Country[A]: India; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Active. 

Firm: 9. Oil and Natural Gas Corporation (ONGC); 
Country[A]: India; 
Sector: Oil exploration and production, natural gas; 
2005-2009 status: Active; 
2010-2011 status: Active. 

Firm: 10. Oil India Ltd.; 
Country[A]: India; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Active. 

Firm: 11. OMV; 
Country[A]: Austria; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Active. 

Firm: 12. ONGC Videsh Ltd.[B]; 
Country[A]: India; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Active. 

Firm: 13. Petroleos de Venezuela S.A.; 
Country[A]: Venezuela; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Active. 

Firm: 14. Sasol; 
Country[A]: South Africa; 
Sector: Petrochemicals; 
2005-2009 status: [Empty]; 
2010-2011 status: Active[C]. 

Firm: 15. Sinopec; 
Country[A]: China; 
Sector: Oil exploration and production, refining; 
2005-2009 status: Active; 
2010-2011 status: Active. 

Firm: 16. Sonangol; 
Country[A]: Angola; 
Sector: Natural gas; 
2005-2009 status: [Empty]; 
2010-2011 status: Active[C]. 

Firm: 17. ABB Lummus[D]; 
Country[A]: Not applicable; 
Sector: Refining, petrochemicals; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 18. Costain Oil, Gas & Process Ltd.; 
Country[A]: United Kingdom; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 19. Daewoo Shipbuilding & Marine Engineering; 
Country[A]: South Korea; 
Sector: Oil exploration and production; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 20. ENI; 
Country[A]: Italy; 
Sector: Oil exploration and production; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 21. GS; 
Country[A]: South Korea; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 22. Haldor Topso[E]; 
Country[A]: Denmark; 
Sector: Refining; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 23. Hinduja; 
Country[A]: United Kingdom; 
Sector: Oil exploration and production, natural gas; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 24. Inpex; 
Country[A]: Japan; 
Sector: Oil exploration and production; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 25. JGC Corporation; 
Country[A]: Japan; 
Sector: Refining; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 26. Lukoil; 
Country[A]: Russia; 
Sector: Oil exploration and production; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 27. LyondelBasell; 
Country[A]: Netherlands; 
Sector: Petrochemicals; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 28. Petrobras; 
Country[A]: Brazil; 
Sector: Oil exploration and production; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 29. PTT Exploration & Production; 
Country[A]: Thailand; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 30. Repsol; 
Country[A]: Spain; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 31. Royal Dutch Shell; 
Country[A]: Netherlands; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 32. Snamprogetti; 
Country[A]: Italy; 
Sector: Pipeline; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 33. StatoilHydro; 
Country[A]: Norway; 
Sector: Oil exploration and production, natural gas; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 34. Total; 
Country[A]: France; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 35. Turkish Petroleum Company; 
Country[A]: Turkey; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 36. Uhde; 
Country[A]: Germany; 
Sector: Petrochemicals; 
2005-2009 status: Active; 
2010-2011 status: Withdrawn. 

Firm: 37. Amona; 
Country[A]: Malaysia; 
Sector: Oil exploration and production; 
2005-2009 status: Active; 
2010-2011 status: Insufficient information available. 

Firm: 38. Gazprom; 
Country[A]: Russia; 
Sector: Oil exploration and production; 
2005-2009 status: Active; 
2010-2011 status: Insufficient information available. 

Firm: 39. Petrofield; 
Country[A]: Malaysia; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Insufficient information available. 

Firm: 40. Petronet LNG; 
Country[A]: India; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Insufficient information available. 

Firm: 41. PGNiG; 
Country[A]: Poland; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Insufficient information available. 

Firm: 42. SKS Ventures; 
Country[A]: Malaysia; 
Sector: Natural gas; 
2005-2009 status: Active; 
2010-2011 status: Insufficient information available. 

Firm: 43. Tecnimont; 
Country[A]: Italy; 
Sector: Petrochemicals; 
2005-2009 status: Active; 
2010-2011 status: Insufficient information available. 

Source: GAO analysis of open source information. 

[A] The country listed is the physical location of the firm as 
reported in open sources. 

[B] ONGC Videsh Ltd. Is a subsidiary of ONGC. 

[C] The company was identified as having commercial activity in open 
sources between January 2010 and May 2011, but was not previously 
identified by in open sources between 2005 and 2009. 

[D] ABB Lummus no longer exists as a firm. ABB of Switzerland sold the 
Lummus Group in 2007 to Chicago Bridge and Iron Company (CB&I) of the 
United States. ABB and CB&I told us they no longer have commercial 
activity in Iran. 

[End of table] 

According to the open sources we reviewed, the companies listed above 
gave varying reasons for ending activity in Iran, including (1) the 
conclusion of contractual agreements with Iran, (2) the difficulty 
associated with conducting business with Iran, or (3) the pressure 
associated with sanctions. For example, Royal Dutch Shell indicated 
that the company ceased its involvement in the development of Iran's 
South Pars natural gas field project to avoid sanctions under CISADA. 
In addition, open sources reported South Korea's GS Engineering and 
Construction Company withdrew from its activities in Iran because of 
"mounting pressures of some Western powers." In addition, State 
reported that the department had used CISADA authorities to persuade 
major multinational oil firms to withdraw from all significant 
activity in Iran. According to State, as of May 2011, Total, Royal 
Dutch Shell, ENI, Repsol, Statoil, and INPEX agreed to terminate or 
are in the process of terminating investments in Iran and committed 
not to pursue future agreements to develop Iran's oil, gas, or 
petrochemical sectors. 

Foreign Firms Are Primarily Active in Oil Exploration and Production 
and Natural Gas Development: 

According to open sources, 16 foreign firms continue to support 
Iranian activities in oil and gas exploration and production, 
refining, and petrochemicals. We found a reduction in the commercial 
activity in Iran's oil and gas development activities. A comparison of 
the firms involved in each activity for the two time periods is 
identified in table 2. We identified 3 companies, China National 
Petroleum Corporation, INA, and Sinopec, that reported having 
commercial activity in more than one oil and gas development activity 
between January 1, 2010 and May 30, 2011. 

Table 2: Comparison of the Number of Firms Supporting Iran Oil and Gas 
Development Activities, during the Period of 2005 through 2009 and 
2010 through May 2011: 

Activity type: Oil exploration and production; 
Number of firms reported as having commercial activity between 2005 
and 2009[A]: 14; 
Number of firms reported as having commercial activity between 2010 
and May 2011[A]: 5. 

Activity type: Refining capacity; 
Number of firms reported as having commercial activity between 2005 
and 2009[A]: 4; 
Number of firms reported as having commercial activity between 2010 
and May 2011[A]: 2. 

Activity type: Natural gas; 
Number of firms reported as having commercial activity between 2005 
and 2009[A]: 23; 
Number of firms reported as having commercial activity between 2010 
and May 2011[A]: 11. 

Activity type: Petrochemicals; 
Number of firms reported as having commercial activity between 2005 
and 2009[A]: 4; 
Number of firms reported as having commercial activity between 2010 
and May 2011[A]: 1. 

Activity type: Pipelines and oil tankers; 
Number of firms reported as having commercial activity between 2005 
and 2009[A]: 4; 
Number of firms reported as having commercial activity between 2010 
and May 2011[A]: 0. 

Source: GAO analysis of open source information. 

[A] Multiple companies reported having commercial activity in more 
than one oil and gas development activity. 

[End of table] 

Oil Exploration and Production: 

Using open source information, we identified 5 foreign firms as having 
commercial activity in Iran's crude oil exploration and production 
efforts. For example, according to open sources, Sinopec (China) 
signed an agreement with Iran to develop the Yadavaran oil field for 
an estimated $2 billion to almost $4 billion. In addition, according 
to open sources, the China National Petroleum Corporation is financing 
90 percent of the development of the North Azadegan oil field, in an 
agreement estimated to be worth more than $2 billion. According to IHS 
Global Insight, Chinese and Indian firms are taking an increased 
interest in oil and gas exploration and production projects in Iran in 
exchange for oil and natural gas; however, new agreements for 
development have slowed since 2007. IHS Global Insight also reports 
that the government of Iran is struggling to increase oil production 
and exploration through investment in known fields, new exploration, 
and maintenance of older oilfields. According to open sources, 7 
companies we identified in 2010 have withdrawn from exploration and 
production activities in Iran. Oil and Gas Journal reports that Iran's 
oil production could fall 27 percent over the next 5 years because of 
a lack of investment in the country's energy sector. 

Refining Capacity: 

Using open source information, we identified 2 firms, Sinopec and 
Hyundai Heavy Industries, that are involved in expanding and upgrading 
Iran's refining capacity. Open sources report that Sinopec is working 
to expand and upgrade the Arak refinery, which will increase the 
plant's processing capacity from 150,000 barrels to about 250,000 
barrels per day. According to open sources, Hyundai Heavy Industries 
delivered processing equipment to the Arak refinery. According to DOE, 
Iran does not currently have sufficient refining capacity to meet its 
domestic demand for gasoline, although Iran intends to increase 
refining capacity to potentially eliminate the need for imported 
refined petroleum. In 2009, DOE reported that Iran runs nine 
refineries, which provide an estimated 1.5 million barrels per day, 
but plans to increase capacity to 3 million barrels per day by 2013. 
IHS Global Insight reports that Indian and Chinese state-owned oil 
companies are interested in participating in Iranian refinery 
construction. 

Natural Gas: 

Using open source information, we identified 11 firms as having 
commercial activity in the development of Iran's natural gas 
resources. For example, open sources reported that three Indian 
companies--India Oil Corporation Ltd., Oil India Ltd., and ONGC Videsh 
Ltd.--have agreements to develop the Farzad natural gas field, an 
estimated $5 billion investment. Additionally, it is reported that in 
October 2010, Petroleos de Venezuela agreed to invest $780 million in 
developing phase 12 of Iran's South Pars gas field. Iran's domestic 
consumption of natural gas has increased rapidly over the past 20 
years, and development of natural gas resources would better position 
Iran to meet domestic demand. According to open sources, China 
National Offshore Oil Corporation has a 25-year agreement with Iran to 
purchase liquefied natural gas from the North Pars field. IHS Global 
Insight also reports that decades of spiraling domestic demand and 
escalating use of gas to inject into mature oil fields have resulted 
in lower gas volumes available for export. According to IHS Global 
Insight, Iran has missed targets to increase total gas exports and its 
natural gas production remains considerably below sustainable 
capacity. However, Iran continues to develop gas fields throughout the 
country, including fields in Fars province and the Persian Gulf. Iran 
also plans to expand its development of liquefied natural gas, but 
this plan requires significant investment from international partners 
and has become less of a priority as Iran has recently focused limited 
funds on oil exploration and production projects. 

Petrochemicals: 

Using open source information, we identified 1 firm involved in the 
production of Iranian petrochemicals. Sasol of South Africa is 
reported to be producing polyethylene at two polymer production plants 
in Bandar Assaluyeh, Iran. The main raw materials used in 
petrochemical production are derived from oil and natural gas, 
according to DOE. Natural gas and other products of the refining 
process are shipped to chemical plants, where they are used to 
manufacture more complex petrochemicals and plastics. According to the 
Institute for Defense Analyses, petrochemicals account for 
approximately 40 percent of Iran's non-oil exports. According to Oil 
and Gas Journal, expanding petrochemical production allows a country 
with large oil and natural gas resources to use them more profitably. 
IHS Global Insight reports that the government of Iran is targeting 
the petrochemical sector as an area for economic diversification and 
job creation. 

The Secretary of State Imposed Sanctions on Two Foreign Firms for 
Investment in Iran's Oil, Gas, and Petrochemical Sectors: 

Since the passage of CISADA in July 2010, the Secretary of State has 
imposed sanctions under the Iran Sanctions Act of 1996 on two 
companies for investment in Iran's oil, gas, and petrochemical 
sectors.[Footnote 16] In October 2010, State imposed sanctions against 
NaftIran Intertrade Company, a Swiss-based oil trade company, for its 
sanctionable investment in the Iranian petroleum sector. In April 
2011, State sanctioned Belarusneft, a Belarusian company, for entering 
into a $500 million contract with the NaftIran Intertrade Company to 
develop the Jofeir oil field. The sanctions imposed on NaftIran and 
Belarusneft include the denial of Export-Import Bank financing, U.S. 
export licenses, and U.S. loans above $10 million, as well as a 
mandatory ban on U.S. government contracts with these firms. 

Two Firms Also Had Contracts with the U.S. Government: 

From January 2010 through May 2011, the U.S. government obligated 
about $4 million in contracts to 2 of the 16 firms we identified in 
open sources as having commercial activity in Iran's oil, gas, and 
petrochemical sectors. The firms that have U.S. government contracts, 
as reported in FPDS-NG, are identified in table 3. In 2010, we 
reported that from fiscal years 2005 through 2009, the U.S. government 
obligated almost $880 million in contracts to 7 of the 41 firms 
identified in our March 2010 report. U.S. agencies obligated almost 90 
percent of these funds for purchases of fuel and petroleum products 
overseas. Five of the 7 companies, identified in our March 2010 
report, had withdrawn their commercial activity as of May 2011. 

Table 3: Firms Reported in Open Sources as Having Commercial Activity 
in the Iranian Energy Sector That Have U.S. Government Contracts: 

Firm/country: Daelim Industrial Co./South Korea; 
Contract actions: Housing construction at a U.S. military base in 
South Korea; 
Total obligated funds between January 1, 2010 and May 30, 2011: 
$4,213,920. 

Firm/country: Hyundai Heavy Industries/South Korea; 
Contract actions: Vehicles and construction equipment; 
Total obligated funds between January 1, 2010 and May 30, 2011: 
$131,848. 

Source: GAO analysis of FPDS-NG records and other government sources. 

[End of table] 

According to the contract information identified in FPDS-NG, the 
Department of Defense entered into contracts with the two companies 
identified in the table. The Department obligated over $4 million to 
Daelim Industrial Company for construction of family housing on a 
military base in South Korea between January 1, 2010 and May 30, 2011. 
In addition, during the same period, the Department of Defense 
obligated approximately $132,000 to Hyundai Heavy Industries Co. 
toward the purchase of vehicles and construction equipment, such as 
forklifts. 

Agency Comments: 

We provided the Departments of State, Energy, and Defense a draft of 
this report for comment. The agencies provided technical comments, 
which we incorporated into the report as appropriate. 

In addition, we provided the firms listed in this report as having 
commercial activity in Iran's energy sector an opportunity to comment 
on the open source information about their firms. We incorporated any 
responses we received from firms into the report. 

We are sending copies of this report to appropriate congressional 
committees, Secretary of State, Secretary of Energy, and Secretary of 
Defense. We will also make copies available to others upon request. In 
addition, the report will be available at no charge on GAO's website 
at [hyperlink, http://www.gao.gov]. 

If you or your staffs have any questions about this report, please 
contact me at 202-512-8979 or christoffj@gao.gov. Contact points for 
our Offices of Congressional Relations and Public Affairs may be found 
on the last page of this report. GAO staff who made major contributors 
to this report are listed in enclosure IV. 

Signed by: 

Joseph A. Christoff: 
Director, International Affairs and Trade: 

Enclosures--4: 

List of Committees: 

The Honorable Carl Levin: 
Chairman: 
The Honorable John McCain: 
Ranking Member: 
Committee on Armed Services: 
United States Senate: 

The Honorable Howard P. McKeon: 
Chairman: 
The Honorable Adam Smith: 
Ranking Member: 
Committee on Armed Services: 
House of Representatives: 

[End of section] 

Enclosure I: Scope and Methodology: 

In order to identify companies with commercial activity in Iran's oil, 
gas, and petrochemical sectors, we searched open source information 
that was determined to be credible and comprehensive by an energy 
economist and information specialists within GAO who have conducted 
work on the energy sector and worked for firms that conduct audits in 
the process industries (such as refining and petrochemical 
production). We defined commercial activity as having signed an 
agreement to conduct business, invested capital, or received payment 
for the provision of goods or services in the Iranian oil, gas, or 
petrochemical sectors. We excluded companies that reported purchasing 
crude oil or natural gas from Iran because these purchases do not meet 
our definition of commercial activity in Iran's oil, gas, or 
petrochemical sectors. To generate the preliminary list, we analyzed 
information in Oil and Gas Journal's Worldwide Construction Update 
reports in December 2010 and April 2011. This publication conducts a 
global survey of ongoing and planned oil and gas contractors and firms 
working in sectors such as oil exploration, refining, and engineering, 
and is trusted and utilized by other U.S. government agencies and 
those familiar with the international oil industry. We verified the 
survey methodology with Oil and Gas Journal's Survey Editor and found 
it sufficiently reliable for our purposes. 

We confirmed the firms' commercial activity in Iran by conducting 
searches in industry publications and company reports and statements 
between January 2, 2010 and May 30, 2011. See enclosure III for a list 
of industry publications that we reviewed for this report. To compile 
the publications used for our searches, information specialists in GAO 
used the Nexus Oil and Energy databases, which contain industry 
publications where more than 60 percent of the stories pertain to the 
oil industry and energy industry. The information specialists then 
screened the publications and excluded sources that were deemed 
insufficiently reliable, such as newspaper reports, newswires, and 
direct news releases from the Iranian government. The information 
specialists searched for the specific names of firms identified in our 
2010 report, as well as key terms, such as "Iran" within 25 words of 
"explore", "drill", "refinery", "natural gas", and "petroleum." We 
also searched for locations in Iran where oil, gas, and petrochemical 
activities are being conducted. In addition, we reviewed company 
publications, including annual reports; Securities and Exchange 
Commission (SEC) filings, if available; press releases and corporate 
statements that publicly reported their commercial activities in Iran; 
or corrected information that had been publicly reported. In addition, 
we reviewed government reports and information from the Department of 
State, Department of Energy, and Congressional Research Service, and 
met with an energy expert from a U.S. intelligence agency. 

We reviewed the list and confirmed that one of the following criteria 
had been met: (1) At least three standard industry publications cited 
the firm as having commercial activity in a specific project, (2) the 
firm provided information on its corporate website about its 
involvement in a specific project and the firm's involvement in the 
specific project was also cited by at least one standard industry 
publication, or (3) the firm provided information in a corporate 
annual report, SEC filing, or an official press release that 
identified its involvement in a commercial activity in Iran. To 
determine whether the firm had withdrawn from commercial activity in 
Iran, we reviewed the list and confirmed that one of the following 
criteria had been met: (1) At least three standard industry 
publications cited the firm as ending commercial activity on a 
project, (2) the firm provided information on its corporate website 
about the end of its involvement in a specific project and the firm's 
withdrawal in the specific project was also cited by at least one 
standard industry publication, or (3) the firm provided information in 
a corporate annual report, SEC filing, or an official press release, 
or was confirmed by State as having withdrawn or planned to withdraw 
from its commercial activity in Iran. We determined that if three 
separate open sources identified a firm as having commercial activity 
in Iran, it could be reasonably assumed that the firm had commercial 
activity. In addition, if the firm reported having commercial activity 
on its website, but not in the company's official reports or 
statements, then we determined it necessary to corroborate the 
information through one open source. 

After confirming that a firm had commercial activity in a specific 
project in Iran, we obtained additional information presented in the 
table in enclosure II--including the firm's activity and the project's 
status--from industry publications. We included companies that 
reported having contracts, agreements, and memorandums of 
understanding to engage in commercial activities in Iran, but we did 
not determine whether these contracts or agreements represented 
binding agreements. When reports varied about certain details of a 
firm's project, we presented the information reported in the most 
recent source available. Where information was not available on the 
value of a specific firm's commercial activity, we reviewed the 
relevant sources to determine the total value of the project in which 
the firm was involved. In some cases, specific information was not 
reported and is reflected as such in the tables. Beginning on June 3, 
2010, we contacted the firms directly to receive an official comment 
on its commercial activity in Iran. We also worked with State 
Department officials to identify appropriate points of contact at the 
firms that could officially comment on the reported information. 
Beginning on June 9, 2011, we e-mailed the firms a letter containing 
information from enclosure II that concerned the firms' reported 
commercial activities in Iran, and provided the firms an opportunity 
to comment on the information. As of July 28, 2011, we received 
responses from eight companies, and we have incorporated the firms' 
responses into the report. 

To identify which firms also have contracts with the United States 
government, we searched the Federal Procurement Data System-Next 
Generation (FPDS-NG). We chose FPDS-NG because it has served as the 
primary government wide contracting database since 1978. Congress, 
executive branch agencies, and the public rely on FPDS-NG for a broad 
range of data on agency contracting actions, procurement, and 
spending.[Footnote 17] The Office of Management and Budget established 
FPDS-NG, and the U.S. General Services Administration administers the 
system.[Footnote 18] We searched the FPDS-NG archives from January 
2010 to May 2011 using search terms that would select any record with 
the same firm name as identified as having commercial activities in 
Iran. After matching firms from our list with records in FPDS-NG, we 
obtained the contract number and the Data Universal Numbering System 
(DUNS) numbers for the firms determined to be identical matches, and 
searched FPDS-NG for these DUNS numbers.[Footnote 19] With certain 
exceptions, all firms that do business with U.S. agencies are required 
to register with the U.S. government's central contractor registry and 
obtain a unique DUNS number. We matched all of the data in enclosure 
II to individual firms' DUNS numbers. We took steps to corroborate key 
FPDS-NG information by reviewing U.S. government documents of the 
firms identified in FPDS-NG. To do so, we searched the Department of 
Defense's Electronic Document Access system to locate copies of 
relevant contract documents, and reviewed the content of these 
contract documents and checked the contract obligations to corroborate 
FPDS-NG data.[Footnote 20] 

[End of section] 

Enclosure II: Publicly Reported Commercial Activity of Foreign Firms 
in the Iranian Oil, Gas, or Petrochemical Sectors: 

The following table presents information gathered and organized from 
reputable industry standard publications and firms' public statements. 
We provided the firms an opportunity to comment on the information 
found in open sources. We did not attempt to determine whether the 
firms in this list meet the legal criteria specified in the Iran 
Sanctions Act, as it is the responsibility of the Department of State 
to do so. 

Table 4: Foreign Firms with Reported Commercial Activity in Iran and 
Firms' Comments Regarding Their Activity: 

Firm/country[A]: Belarusneft/Belarus; 
Firm Activity: Development of the Jofeir oil field; 
Status: Signed a contract in September 2007 and started the second 
phase of development in February 2011; 
Commercial activity: Buy-back contract valued at $500 million; 
Firm comment: Contacted on June 15, 2011; 
no response as of July 28, 2011. 

Firm/country[A]: China National Offshore Oil Corporation (CNOOC)/ 
China; 
Firm Activity: Development of the North Pars natural gas field; 
Status: Twenty-five-year agreement to purchase natural gas; 
Commercial activity: The North Pars project is estimated to cost $16 
billion; 
Firm comment: Contacted on June 9, 2011; 
no response as of July 28, 2011. 

Firm/country[A]: China National Petroleum Corporation (CNPC)/China; 
Firm Activity: Development of the Masjed-i-Suleiman oil field; 
Development of Block 3 oil field in the Zagros Basin; 
Development of the North Azadegan oil field; 
Development of South Pars phase 11 gas project; 
Status: Progress stalled since 2010 and the February 2011 completion 
deadline was missed; Second exploration well started in December 2007; 
Equipment procurement problems will likely delay production by 2 years 
as of November 2010; CNPC has yet to drill its first well as of 
November 2010; 
Commercial activity: CNPC has a 75 percent share; Not reported; 
Estimated $2 billion oil project with CNPC financing 90 percent; 
Project is valued at $4.7 billion; 
Firm comment: Contacted on June 17, 2011; no response as of July 28, 
2011. 

Firm/country[A]: Daelim/South Korea; 
Firm Activity: Construction of storage tanks for liquefied natural gas 
at Tombak; Development of phase 12 of the South Pars gas field; 
Status: Project scheduled for completion in April 2011; Scheduled for 
completion in 2013; 
Commercial activity: Project valued at $260 million; Project valued at 
$612 million; 
Firm comment: Confirmed roles in both projects. Storage tank 
construction is valued at 120 million euros. South Pars gas 
development began in 2009 and is valued at $612 million. 

Firm/country[A]: Edison/Italy; 
Firm Activity: Holds a hydrocarbon exploration license in Iran and has 
a hydrocarbons branch located in Iran; 
Status: Not reported; 
Commercial activity: Not reported; 
Firm comment: Stated that no exploration licenses are held. However, a 
four-year contract ending April 2012 to explore the Dayeyr Block is 
ongoing. Once the contract ends, Edison will not make further 
investments in Iran. 

Firm/country[A]: Hyundai Heavy Industries/South Korea; 
Firm Activity: Project Regenerator for the Arak refinery; 
Status: Not reported; 
Commercial activity: Not reported; 
Firm comment: Contacted on June 7, 2011; no response as of July 28, 
2011. 

Firm/country[A]: INA/Croatia; 
Firm Activity: Exploration of Moghan 2 oil and gas block; 
Status: Four-year contract signed in 2008; 
Commercial activity: The minimum financial obligation is $40.3 million; 
Firm comment: Contacted on June 10, 2011; no response as of July 28, 
2011. 

Firm/country[A]: Indian Oil Corporation Ltd. (IOCL)/India; 
Firm Activity: Development of the Farzard natural gas field in the 
Farsi block; 
Status: Negotiations ongoing as of January 2011; 
Commercial activity: Investment of $5 billion with a 40 percent stake; 
Firm comment: Contacted on June 9, 2011; no response as of July 28, 
2011. 

Firm/country[A]: Oil and Natural Gas Corporation (ONGC)/India; 
Firm Activity: Development of natural gas field South Pars phase 12; 
Status: Finalizing contracts as of November 2010; 
Commercial activity: Estimated cost of $7.8 billion. Part of a 
consortium developing the field; 
Firm comment: Contacted on June 9, 2011; no response as of July 28, 
2011. 

Firm/country[A]: Oil India Ltd. (OIL)/India; 
Firm Activity: Development of the Farzard natural gas field in the 
Farsi block; 
Status: Negotiations ongoing as of January 2011; 
Commercial activity: Investment of $5 billion with a 20 percent share; 
Firm comment: Contacted on June 9, 2011; 
no response as of July 28, 2011. 

Firm/country[A]: OMV/Austria; 
Firm Activity: Onshore exploration; 
Status: Not reported; 
Commercial activity: 100 percent share; 
Firm comment: Contacted on June 9, 2011; no response as of July 28, 
2011. 

Firm/country[A]: ONGC Videsh Ltd. (OVL)/India[B]; 
Firm Activity: Development of the Farzad natural gas field in the 
Farsi block; Development of natural gas field South Pars phase 12; 
Status: Negotiations ongoing as of January 2011; Finalizing contracts 
as of November 2010; 
Commercial activity: Investment of $5 billion with a 40 percent share; 
Estimated cost of $7.5 billion. In a consortium with a total share of 
40 percent; 
Firm comment: Contacted on June 13, 2011; no response as of July 28, 
2011. 

Firm/country[A]: Petroleos de Venezuela S.A. (PDVSA)/Venezuela; 
Firm Activity: Development of natural gas field South Pars phase 12; 
Status: Agreement made in October 2010; 
Commercial activity: PDVSA agreed to invest $780 million; 
Firm comment: Contacted on June 22, 2011; no response as of July 28, 
2011. 

Firm/country[A]: Sasol/South Africa[C]; 
Firm Activity: Production of polyethylene at two polymer plants in 
Bushehr Province; 
Status: Operation began in 2009; 
Commercial activity: Capacity is 1million tons/year; 
Firm comment: Confirmed the two polyethylene plants and the existence 
of an Ethane Cracker. Noted that products from the facilities are 
exported from Iran. 

Firm/country[A]: Sinopec/China; 
Firm Activity: Development of the Yadavaran oil field; 
Expansion and upgrades to the Arak refinery; 
Status: Production is scheduled to begin in the next 1-2 years with a 
targeted peak output of 300,000 barrels per day, as of June 2010; 
The upgrades will increase processing capacity to 250,000 barrels per 
day and increase gasoline output to 100,000 barrels per day; 
Commercial activity: Signed an agreement valued between $2 billion and 
$3.6 billion; Not reported; 
Firm comment: Contacted on June 9, 2011; no response as of July 28, 
2011. 

Firm/country[A]: Sonangol/Angola; 
Firm Activity: Project to extract and liquefy natural gas from the 
South Pars field phase 12; 
Status: Original 2011 deadline is not expected to be met; 
Commercial activity: Investment of $1.5 billion, a 20 percent share; 
Firm comment: Contacted on June 27, 2011; no response as of July 28, 
2011. 

Source: GAO analysis of open source information. 

[A] The country listed is the physical location of the firm as 
reported in open sources. 

[B] ONGC Videsh Limited is a subsidiary of Oil and Natural Gas 
Corporation (ONGC). 

[C] Sasol Arya Polymer Company is the subsidiary of Sasol responsible 
for the project. 

[End of table] 

[End of section] 

Enclosure III: Industry Sources and Publications Used to Identify 
Companies that Reported Having Commercial Activities in Iran's Oil, 
Gas, and Petrochemical Sectors: 

The following list identifies the open source information that was 
determined to be credible and comprehensive by information specialists 
within GAO. The industry and trade publications identified in the 
table were compiled and searched through Nexis. 

1. Africa Energy Intelligence. 

2. Africa Mining Intelligence. 

3. Australian Mining & Oil News Bites. 

4. BMI Americas Oil and Gas Insights. 

5. BBC Monitoring Middle East. 

6. Biotech Financial Reports. 

7. BMI Asia Pacific Oil and Gas Insights. 

8. BMI Emerging Europe Oil and Gas Insights. 

9. BMI Middle East and Africa Oil and Gas Insights. 

10. BMI Western Europe Oil and Gas Insights. 

11. Central Europe Energy Weekly. 

12. Chemweek Daily. 

13. Chemical News and Intelligence. 

14. Chemical Week. 

15. Chemweek Daily Newswire. 

16. China Energy Weekly. 

17. China News. 

18. CIO Insight. 

19. CIO Insight.com. 

20. Contractor. 

21. CT Reports. 

22. CT's Pipeline. 

23. CT's Voice Report. 

24. Daily Oil Bulletin. 

25. Diesel Fuel News. 

26. Electric Power Daily. 

27. Electric Utility Week. 

28. Electronic Chemicals News. 

29. Energy. 

30. Energy & Ecology. 

31. Energy & Ecology Business. 

32. Energy Business Journal. 

33. Energy Compass. 

34. Energy in East Europe. 

35. Energy Insights. 

36. Energy Intelligence Briefing. 

37. Energy Network. 

38. Energy Optimization News. 

39. Energy Prices & Taxes. 

40. Energy Processing Canada. 

41. Energy Trader. 

42. Energy Weekly News. 

43. EnergyWashington Week Energy Stories. 

44. Engineering Business Journal. 

45. Engineering Management. 

46. Engineering News-Record. 

47. Environment and Energy Daily. 

48. Environmental Policy Alert. 

49. Ethanol & Biodiesel News. 

50. European Daily Electricity Markets. 

51. European Gas Markets. 

52. European Management Journal. 

53. European Spot Gas Markets. 

54. Financial Services Review. 

55. Fleet Owner. 

56. FT Energy Newsletters. 

57. Fuel Cell Technology News. 

58. Gas Daily. 

59. Gas Processors Report. 

60. Gasification News. 

61. Global Power Report. 

62. Global Refining & Fuels Report. 

63. Government Procurement Report. 

64. Government Security. 

65. Hydrocarbon Processing. 

66. ICIS Chemical Business. 

67. ICIS Chemical Business America. 

68. IET Generation, Transmission & Distribution. 

69. India Business Insight. 

70. India Energy News. 

71. Industrial Environment. 

72. Industrial Marketing Management. 

73. Inside Cal/EPA. 

74. Inside CMS. 

75. Inside Energy Extra. 

76. Inside Energy/with Federal Lands. 

77. Inside EPA Weekly Report. 

78. Inside F.E.R.C. 

79. Inside F.E.R.C.'s Gas Market Report. 

80. Inside Fuels & Vehicles Energy Stories. 

81. Inside US-China Trade. 

82. Interfax. 

83. Interfax Global markets. 

84. International Journal of Forecasting. 

85. International Journal of Research in Marketing. 

86. International Oil Daily. 

87. International Petroleum Finance. 

88. International Securities Finance. 

89. Iraq Revenue Watch. 

90. Kazakhstan Oil & Gas Weekly. 

91. Liquid Real Estate. 

92. Media Industry Newsletter. 

93. Medical Design (Penton). 

94. Medical Materials Update. 

95. Megawatt Daily. 

96. Metal Bulletin Daily Alerts. 

97. Metal Bulletin Monthly. 

98. Metal Bulletin Weekly. 

99. Metals Week. 

100. Micro Engineering & Nanotechnology News. 

101. Mid-Atlantic Construction. 

102. Middle East Energy, Oil and Gas News Wire. 

103. Mining Annual Review. 

104. Mining Journal. 

105. Mining Magazine. 

106. Monthly Energy ReviewNatural Gas Week. 

107. Nanoparticle News. 

108. National Journal's Daily Energy Briefing. 

109. Natural Gas Week. 

110. NDT Update. 

111. NEFT Trader. 

112. Nefte Compass. 

113. Nuclear Fuel. 

114. Nuclear News. 

115. Nuclear Plant Journal. 

116. Nucleonics Week. 

117. Nucleonics Week Offshore. 

118. Octane Week. 

119. Offshore. 

120. Oil & Gas Journal. 

121. Oil & Gas News. 

122. Oil and Gas Investor This Week. 

123. Oil Daily. 

124. Oil Market Intelligence. 

125. Oil Market Report. 

126. Operations Management. 

127. Overhaul & Maintenance. 

128. Petroleum Accounting and Financial Management Journal. 

129. Petroleum Economist. 

130. Petroleum Intelligence Weekly. 

131. Physics Week. 

132. Pipeline and Gas Journal. 

133. PipeLine and Gas Technology. 

134. Platts Coal Outlook. 

135. Platts Coal Trader. 

136. Platts Coal Trader International. 

137. Platts Energy Business & Technology. 

138. Platts Energy Economist. 

139. Platts EU Energy. 

140. Platts International Coal Report. 

141. Platts International Gas Report. 

142. Platts North Sea Letter. 

143. Platts Oilgram News. 

144. Platts Oilgram Price Report. 

145. Platts Power in Asia. 

146. Platts Power in Europe. 

147. Platts Power in Latin America. 

148. Platts Power UK. 

149. Platts Renewable Energy Report. 

150. Platts Retail Energy. 

151. Politics & Government Business. 

152. Power Electronics Technology. 

153. Power Engineer. 

154. Power Magazine. 

155. Power Markets Week. 

156. Power, Finance and Risk. 

157. Project Finance. 

158. Propane Canada. 

159. Public Utilities Fortnightly. 

160. RDS Business & Industry Selected Documents. 

161. RDS Business and Management Practices. 

162. Risk Policy Report Envirn stories. 

163. Russia & CIS Oil and Gas Weekly. 

164. Securities Week. 

165. Terror Response Technology Report. 

166. The Electricity Daily. 

167. The Electricity Journal. 

168. The Platts Petrochemical Report. 

169. The Review of Securities and Commodities Regulation. 

170. Total Alternatives. 

171. Total Securitization. 

172. Trade Finance. 

173. UPI Energy. 

174. US Coal Review. 

175. Utility Environment Report. 

176. Utility Week. 

177. World Gas Intelligence. 

178. World Oil. 

179. World Refining & Fuels. 

180. World Refining & Fuels Today. 

181. Worldwide Databases. 

Source: GAO. 

[End of section] 

Enclosure IV: GAO Contact and Staff Acknowledgments: 

GAO Contact: 

Joseph A. Christoff, (202) 512-8979 or christoffj@gao.gov: 

Staff Acknowledgments: 

In addition to the contact named above, Tetsuo Miyabara (Assistant 
Director), John F. Miller, JoAnna Berry, Laura Erion, Julia Kennon, 
Grace Lui, Barbara Shields, and Adam Vogt made key contributions to 
this report. 

[End of section] 

Footnotes: 

[1] Central Intelligence Agency, World Factbook, [hyperlink, 
https://www.cia.gov/library/publications/the-world-
factbook/goes/ir.html] and International Monetary Fund report No. 
10/74, March 2010. 

[2] IHS Global Insight provides economic and financial information for 
the energy industry on a contract basis, including analysis and 
forecasting for the Iranian oil, gas, and petrochemical sectors 
discussed in this report. 

[3] International Emergency Economic Powers Act, Pub. L. No. 95-223, 
91 Stat. 1625 (1977); National Emergencies Act, Pub. L. No. 94-412, 90 
Stat. 1255 (1976), and 3 U.S.C. § 301 as implemented by Executive 
Order 12957, 60 Fed. Reg. 14615 (Mar. 15, 1995) (prohibiting U.S. 
involvement with petroleum development in Iran), Executive Order 
12959, 60 Fed. Reg. 24757 (May 6, 1995) (banning specified exports and 
investment), and Executive Order 13059, 62 Fed. Reg. 44531 (Aug. 19, 
1997) (prohibiting virtually all trade and investment activities with 
Iran by U.S. persons, wherever located). 

[4] Iran-Libya Sanctions Act of 1996, Pub. L. No. 104-172, § 5, 110 
Stat. 1541, 1543 as amended. The act also allows for sanctions against 
persons providing goods, technology, or services to Iran knowing that 
such provision would contribute materially to Iran's ability to 
acquire or develop chemical, biological, or nuclear weapons or related 
technologies, or acquire or develop destabilizing numbers and types of 
advanced conventional weapons. 

[5] Pub. L. No. 111-195, § 102, 124 Stat. 1312, 1317-28. 

[6] GAO, Firms Reported in Open Sources as Having Commercial Activity 
in Iran's Oil, Gas, and Petrochemical Sectors, [hyperlink, 
http://www.gao.gov/products/GAO-10-515R] (Washington, D.C.: Mar. 23, 
2010) 

[7] S. Rep. No. 111-201 (2011). 

[8] GAO, The U.S. Government Is Establishing Procedures for a 
Procurement Ban against Firms that Sell Iran Technology to Disrupt 
Communications but Has Not Identified Any Firms, [hyperlink, 
http://www.gao.gov/products/GAO-11-706R] (Washington, D.C.: June 30, 
2011). 

[9] Our March 2010 report [hyperlink, 
http://www.gao.gov/products/GAO-10-515R] did not identify any U.S. 
firms that reported having commercial activity in Iran's energy 
sector, nor did our review of open sources between January 1, 2010 and 
May 30, 2011. 

[10] Pub. L. No. 104-172, § 5, as amended. 

[11] Pub. L. No. 111-95. 

[12] Pub. L. No. 111-195, § 102. 

[13] Pub. L. No. 104-172, § 5(a), as amended. 

[14] Id. 

[15] Table 1 presents information gathered from reputable industry 
standard publications and firms' public statements. We used the terms 
"active," "withdrawn," and "insufficient information available" to 
denote the company status based upon our review of open sources. 
"Active" indicates companies have commercial activity in Iran. 
"Withdrawn" means that the company withdrew from commercial activity. 

[16] See Public Notice 7408, 76 Fed. Reg. 18,821 (Apr. 5, 2011) and 
Public Notice 7197, 75 Fed. Reg. 62,916 (Oct. 13, 2010). In addition, 
on May 24, 2011, the Secretary of State imposed sanctions on seven 
companies, Petrochemical Commercial Company International (located in 
New Jersey), Royal Oyster Group (United Arab Emirates), Speedy Ship 
(United Arab Emriates), Tanker Pacific (Singapore), Ofer Brothers 
Group (Israel), Associated Shipbroking (Monaco), and Petróleos de 
Venezuela (Venezuela) for the sale of refined petroleum products to 
Iran. Under the ISA as amended by CISADA, the President may impose 
sanctions on the sale of refined petroleum products to Iran, but this 
activity falls outside the scope of this review. 

[17] FPDS-NG can be accessed at [hyperlink, 
https://www.fpds.gov/fpdsng_cms/]. Reporting requirements for FPDS-NG 
are in Federal Acquisition Regulation (FAR) subpart 4.6; FPDS-NG data 
are described in FAR 4.602. 

[18] For more information on FPDS-NG and other federal procurement 
data systems, see GAO, Federal Contracting: Observations on the 
Government's Contracting Data Systems, [hyperlink, 
http://www.gao.gov/products/GAO-09-1032T] (Washington, D.C.: Sept. 29, 
2009). 

[19] Data Universal Numbering System numbers are nine-digit 
identifying numbers obtained by firms through Dunn and Bradstreet to 
uniquely identify a firm. Dunn and Bradstreet is a leading source of 
commercial information, and maintains a commercial database with more 
than 140 million business records. U.S. vendors must be registered in 
the U.S. Central Contract Registry prior to the award of a U.S. 
government contract and a firm must have a DUNS number to register. 

[20] The Electronic Document Access system is a Department of Defense 
online system designed to provide acquisition-related information. 

[End of section] 

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