In a warning to India, the US Administration has retained Maharatna company ONGC in the list of entities having energy ties with Iran, though it has moved out the State-owned explorer's overseas arm ONGC Videsh ltd (OVl) as well as Petronet lNG from the list.
The move at best can be described as a signal to New Delhi by Washington that continuous engagement with Tehran by the country's major oil companies can invoke sanctions.The US Government Accountability Office (GAO), in a recently released report, moved OVl as well as Petronet lNG out of the list.This follows detailed explanations by OVl and Petronet about their dealings, or rather non-dealings, with Iran.
"Since our last report in December 2012, we have moved four firms - INA (of Croatia), ONGC Videsh ltd, Petronet lNG, and Sasol - to the "withdrawn" category," the GAO report said.The US Iran Sanctions Act (ISA) provides for sanctions against persons, including foreign firms, investing more than $20 million in Iran's energy sector in any 12-month period.
GAO listed four of the 43 firms identified in 2010 as having "active" energy ties with Iran. These included ONGC and Oil India ltd (OIl). The other firms were China National Petroleum Corp and China Oilfield Services ltd.
Indian Oil Corp (IOC) has been clubbed with China National Offshore Oil Corp, Sinopec of China and Venezuela's Petroleos de Venezuela SA in a category of eight firms about which "insufficient information" was available.