Case No. Ukraine-EO13662-2014-313323-1
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701 13th Street, N.W.
Washington, D.C. 20005
Dear Mr. [ ]:
This responds to your request of October 15, 2014, and additional correspondence dated June 23, 2015 and September 1, 2015 (collectively, the “Application”), on behalf of DeGolyer and MacNaughton Corp. (“D&M”), to the Office of Foreign Assets Control (OFAC). According to the Application, D&M is a petroleum industry consultancy headquartered in Dallas, Texas whose clients include Russian oil and gas companies listed on the Sectoral Sanctions Identifications List (SSI List) under Directives 2 and 4 of Executive Order 13662 (E.O. 13662). You further state that D&M provides hydrocarbon resource audits to its clients, which, based on D&M’s analysis of the geological and geophysical data interpreted by D&M’s clients, yield an estimate of the hydrocarbon resources in the deposits licensed to...
1) BACKGROUND:
This guidance letter interprets SSI Directive 2 (a standard “new debt” prohibition) and SSI Directive 4, which prohibits “U.S. persons from engaging in the provision, exportation, or reexportation, directly or indirectly, of goods, services (except for financial services), or technology in support of exploration or production for [certain] deepwater, Arctic offshore, or shale projects.” While neither of these prohibitions contain a reference to “facilitation,” it is presumed that the standard “facilitation” prohibition that runs through all of OFAC’s prohibitions applies here. (See Compliance Services Guidance and, with respect to Directive 4 in particular, Enforcement Release - Cameron International Corporation). In the Cameron case, OFAC regarded a U.S. person’s facilitation of a subsidiary’s exportation of goods to a prohibited Directive 4 project to constitute the supply of services “in support of”...