Pay compensation for ending oil contracts: Iran

February 20th, 2012 - 11:26 pm ICT by IANS  

Tehran, Feb 20 (IANS) European companies must compensate Iran for breaking oil contracts after the fresh round of EU sanctions, a top official said Monday.

Iran did not initiate the sanctions. It was the European governments that did, so Iran holds the European companies accountable for violating the contracts, National Iranian Oil Company Managing Director Ahmad Ghalebani said.

Iran used to export 515,000 bpd crude oil to European countries but now the amount has been reduced, the official IRNA news agency quoted Ghalebani as saying.

He said contracts signed with British and French companies are being terminated but contracts with several other European nations are still in force.

He warned the countries of halting oil exports if they pursue a hostile approach towards Iran.

Ghalebani said crude oil prices rose $120 per barrel from $103 after Iran cut oil exports to Britain and France. He predicted oil prices will hit $150 a barrel after similar measures against other European companies.

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