On 12 January 2012, the United States Department of State announced that it was imposing sanctions against FAL Oil Company Limited ("FAL Oil") under the Iran Sanctions Act, as amended by the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010.
FAL Oil is strongly of the view that the sanctions are based on a misunderstanding of FAL Oil's petroleum trading activities and, as a result, are inappropriate and unwarranted. FAL Oil intends to work closely with the United States Department of State to ensure that the United States Department of State and other government agencies have a better understanding of the true scope and nature of FAL Oil's petroleum trading activities. On this basis, Fal Oil will be seeking an early removal of the sanctions.
Notwithstanding that Fal Oil will be focusing on removing these sanctions, such sanctions will not affect Fal Oil’s day-to-day business activities.
As soon as the position becomes clearer, we will provide all interested parties with further information.