BP 2010 Annual Report Download - page 35
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Businessreview
Business review
Furthernoteoncertainactivities
Duringtheperiodcoveredbythisreport,non-USsubsidiariesorother
non-USentitiesofBPconductedlimitedactivitiesin,orwithpersonsfrom,
certaincountriesidentiedbytheUSDepartmentofStateasState
SponsorsofTerrorismorotherwisesubjecttoUSsanctions(‘Sanctioned
Countries’).Theseactivitiescontinuetobeinsignicanttothegroup’s
nancialconditionandresultsofoperations.Inthersthalfof2010,new
sanctionsagainstIranandagainstcompaniesthatmakeinvestmentsthat
enhanceIran’sabilitytodeveloppetroleumresourcesorprovideorfacilitate
theproductionorimportofrenedpetroleumproductsintoIranwere
adoptedintheUSundertheComprehensiveIranSanctionsAccountability
andDivestmentActof2010.TheEuropeanUnionandtheUNalsoadopted
newrestrictivemeasures.TheEUsanctionsrestricttheprovisionofcertain
technologiestoIranianentitiesandalsoprohibitprovidingassistanceto
helpdevelopcertainexplorationandproduction,rening,andLNGfacilities
oroperationsinIran.
BPhasinterestsin,andistheoperatorof,twoeldsandapipeline
locatedoutsideIraninwhichNaftiranIntertradeCo.Ltd,NICOSPVLimited
(NICO)andIranianOilCompany(UK)Limitedhaveinterests.Oneofthese
elds,theNorthSeaRhumeld,hassuspendedproductionpending
claricationoftheimpactoftheEUrestrictivemeasures.TheShahDeniz
eldcontinuesinoperationundertheEUmeasures.BPhaspurchasedor
shippedquantitiesofcrudeoil,reneryandpetrochemicalsfeedstocks,
blendingcomponentsandLPGofIranianoriginorfromIranian
counterpartiesprimarilyforsaletothirdpartiesinEuropeandasmall
portionisusedbyBPinitsownfacilitiesinSouthAfricaandEurope.BP
incurssomeportcostsforcargosloadedinIranandsometimescharters
Iranian-ownedvesselsoutsideofIran.Smallquantitiesoflubricantsare
soldtonon-IranianthirdpartiesforuseinIran.UntilrecentlyBPheldan
equityinterestinanIranianjointventurethathasablendingfacilityand
marketslubricantsforsaletodomesticconsumers.InJanuary2010,BP
restructureditsinterestinthejointventureandcurrentlymaintainsits
involvementthroughcertaincontractualarrangements.BPdoesnotseek
toobtainfromthegovernmentofIranlicencesoragreementsforoiland
gasprojectsinIran,isnotconductinganytechnicalstudiesinIran,and
doesnotownoroperateanyreneriesorpetrochemicalsplantsinIran.
BPsellslubricantsinCubathrougha50:50jointventureandtrades
insmallquantitiesoflubricants.InSyria,BPsellslubricantsthrougha
distributorandBPobtainscrudeoilandreneryfeedstocksforsaletothird
partiesinEuropeandforuseincertainofitsnon-USreneries.Inaddition,
BPsellscrudeoilandrenedproductsintoandfromSyriaandincursport
costsforvesselsutilizingSyrianports.BPsoldsmallquantitiesofLPGto
anagentonbehalfofaSudanesepartyformakingaerosolsinSudan,but
nolongermakessuchsales.Anon-BPoperatedMalaysianjointventurehas
soldsmallquantitiesofpetrochemicalsintoBurma;thesesaleshavenow
terminated.Anon-controlledandnon-operatedBrazilianbiofuelsjoint
ventureinwhichBPhasaninterestsoldacargoofsugarcaneby-products
toIranandtoSyria.
BPsuppliestoairlinesandshippingcompaniesfromSanctioned
Countriesfuelsandlubricantsatairportsandportslocatedoutsidethese
countries.BPsellstothirdpartieswhomayre-selltoentitiesfrom
SanctionedCountries.Anon-controlled,non-operatedjointventurein
Hamburg,Germanyprovidedfueldeliveryservices(butdidnotsellfuel)to
Iranianairlines.BPterminatedallfuelsalestoIranianairlinesasofJuly
2010andtoSudaneseairlinesinDecember2010.SalestoIranianshipping
companieshavealsobeenterminated.BPhasregistered,andpaidrequired
feesfor,patentsandtrademarksinSanctionedCountries.
BPmonitorsitsactivitieswithSanctionedCountriesandkeeps
themunderreviewtoensurecompliancewithapplicablelawsand
regulationsoftheUS,theEUandothercountrieswhereBPoperates.
BPAnnualReportandForm20-F2010 33