BP May Have Violated U.S. Sanctions On Trade With Iran, Says Government Audit

This story has been updated

BP is one of 16 international companies that may have violated U.S. sanctions against selling gas to Iran, according to a new report by the Government Accountability Office.

Under the Comprehensive Iran Sanctions, Accountability and Divestment Act (CISADA) signed by President Obama in July 2010, companies or individuals that sell refined petroleum products to Iran in excess of $1 million during a year are subject to three or more out of a possible nine sanctions.

Investigators at the GAO claim that BP sold the petroleum between January 1, 2009 and June 30, 2010, based on open sources, which includes trade publications and company statements. Though the GAO examined sales before the signing of the updated sanctions in July 2010, the report "highlights open source information that, following further investigation by the State Department, could contribute to the identification of persons of firms whose activities may be sanctionable under ISA [Iran Sanctions Act of 1996], as amended by CISADA."

Yet BP notified GAO that it stopped selling gasoline to Iran in October 2008 and maintains that information that reported "BP sold gasoline to Iran in 2009 or 2010 was inaccurate," according to the report.

The GAO stands by its research, emphasizing that "we required multiple corroborating sources of information for every entry in our tables of firms reported to have sold refined petroleum products to Iran at any time during the period between January 1, 2009, and June 30, 2010."

BP stopped selling gas to Iran in the second half of 2009, reported Time magazine in June. But it remains one of the most active Western oil companies engaged in energy projects in Iran -- through a joint venture with Swiss-based NaftIran:

In the last five years, BP has begun extracting around 4 million cubic meters per day of natural gas from a field in Britain's North Sea in a 50-50 joint venture with Iran, worth $1 million a day at June 15, 2010 spot prices. And BP operates one of the world's largest gas fields in Azerbaijan in a joint venture with Iran and other foreign oil companies, producing 8 billion cubic meters of gas per year, worth up to a reported $2.4 billion per year.

BP was one of three companies, along with France's Total and United Arab Emirates' Emirates National Oil Company, which are reported to have sold gas to Iran and to have U.S. government contracts. According to the GAO, BP has almost $2.2 billion in contracts with the U.S. government, largely with the Department of Defense for the purchase of jet and turbine fuel.

Firms that are reported to have sold gas to Iran in the 2009-2010 period "with no indication that they have stopped sales" include Emirates National Oil Company, Singapore's Hin Leong Trading, China's ChinaOil, Unipec and Zhuhai Zhenrong.

BP did not return a call for comment in time for publication.

READ the GAO report:

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Comments

[Sharak]

08:03 PM on 10/22/2010

Since when does Iran buy oil. I thought they were a leading exporter of the stuff. Arent they an Oil independant country?

[Liberal2009]

12:23 PM on 10/06/2010

Multi-national corporations have no interests in state soveriegnty or its laws. Its just another problem to throw money at.

[Carolyn Ervette Powell]

10:09 AM on 10/06/2010

Whats wrong with that I can think of other things BP have done worst than that look like they were just doing what they wanted as they always have. So what does BP get for breaking US santions?

[koroush1336]

01:15 AM on 10/06/2010

One hand washes the other hand! Thia is what happens when you only think of making PROFITS at all costs! Would it not be better to be a little bit more human?!

[Baghooli]

12:58 AM on 10/06/2010

British Petroleum!
Lol, let us think about which states have nuclear weapon out of box, Pakistan/India/Israel all of them were colonies of British not to mention S. Africa or giving nuclear know how to Russian and French! Last thing they want is, well being of US of A!

[UWRuckus]

06:45 PM on 10/05/2010

This also hits home in Washington State. Right now, BP is the largest financial backer of Initiative 1053, which would require a two-thirds legislative majority for tax increases (which would deadlock the state legislature). It's their latest ploy to avoid being taxed to finance the clean-up of Puget Sound, where hundreds of species (including salmon and orcas) are at risk. Washington State has the most regressive tax code in the country, to boot:

http://ouramericangeneration.org/blog/the-open-veins-of-washingtons-low-income-communities

[sensimilla]

12:07 PM on 10/05/2010

good. Sanctions only hurt the PEOPLE of a country, not it's govt.

Sanctions are first world economic w4rfare.

[csalt]

09:03 AM on 10/05/2010

Let Iran help pay to clean up our coast.

[keepemhonest]

08:03 AM on 10/05/2010

BP and their big oil brethren OWN this country ...

[northstar11]

07:26 AM on 10/05/2010

so what ------haliburton broke sanctions ---and look how they were punished.

[sensimilla]

12:07 PM on 10/05/2010

with contracts and HUGE bonuses.

[Parvaneh Ferhad]

03:39 AM on 10/05/2010

I am not a fan of BP by all means, but what kind of legal system is this:

Under the Comprehensive Iran Sanctions, Accountability and Divestment Act (CISADA) signed by President Obama in July 2010, companies or individuals that sell refined petroleum products to Iran in excess of $1 million during a year are subject to three or more out of a possible nine sanctions.
Investigators at the GAO claim that BP sold the petroleum between January 1, 2009 and June 30, 2010, based on open sources, which includes trade publications and company statements. Though the GAO examined sales before the signing of the updated sanctions in July 2010, the report "highlights open source information that, following further investigation by the State Department, could contribute to the identification of persons of firms whose activities may be sanctionable under ISA [Iran Sanctions Act of 1996], as amended by CISADA."

Unless ex-post facto laws are now allowed and legal, it just doesn't matter what BP did before the law came into force, only what it did since the law came into force.

[keepemhonest]

08:32 AM on 10/05/2010

With all due respect,  in your quoted remarks the keywords are "updated sanctions"  ... You should read the sanctions against Iran signed in 2008.

[alimostofi]

02:56 AM on 10/05/2010

It has taken 31 years for the world to realise all this. Better late than never. First of all refer to them as Islamic regime and the rest will fall into place. Recognise them first. Separate them from Iranians.

[TeresaV]

02:37 AM on 10/05/2010

Considering the source, I am not surprised in the least when everything just comes down to their "bottom line" in the end. Unfortunately, with so many corrupt people in our government, including our judges who are in bed with Big Oil and making millions from these companies, nothing is going to change anytime soon, if ever.
You can be above the law when you're a huge corporation and thanks to our supreme court helping them along, they NOW can "buy" elections for those who can be most trusted to protect their profits at the expense WE, the People, our environment and future health of our planet. More wars to come!!

[Eric Sarnoski]

01:25 AM on 10/05/2010

ahhh......just a reminder to everyone BP sold one of its holdings in indonesia to come up with money to cover the Gulf oil spill and until we get reimbursment money from them it might be prudent to allow the spigot to flow. Eventually the Iranian money will end up going towards the gulf. Ironey?

[TheOuroborus]

01:22 AM on 10/05/2010

I start with a quote by Gomer Pyle, "Su-prize, su-prize, su-prize." And end it with Wayne's World "NOT!"