Supplement to proposal COM (2010)459 for a COUNCIL REGULATION (EU) No …/2010 on restrictive measures against Iran and repealing Regulation (EC) No 423/2007
Date: 2010-09-21
Institutions: European Commission
Subjects: Iran, dual-use good, economic sanctions, export monitoring, international sanctions, nuclear non-proliferation, technology transfer

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EUROPEAN COMMISSION 

Brussels, 21.9.2010 
COM(2010) 515 final 

2010/0240 (NLE) 

Supplement to proposal COM (2010)459 for a 

COUNCIL REGULATION (EU) No …/2010 

on restrictive measures against Iran and repealing Regulation (EC) No 423/2007 

(presented jointly by the Commission and the High Representative of the EU  
for Foreign Affairs and Security Policy) 

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EXPLANATORY MEMORANDUM 

(1) 

(2) 

(3) 

(4) 

On  31st  August  2010,  the  Commission  and  the  High  Representative  of  the  EU  
for  Foreign  Affairs  and  Security  Policy  made  a  joint  proposal  COM(2010)459  for  a 
Council  Regulation  on  restrictive  measures  against  Iran,  which  should  give  effect  to 
several  measures  provided  by  Decision  2010/413/CFSP  of  26  July  2010  and  replace 
Council Regulation (EC) No 423/2007. 

The explanatory memorandum to the proposal indicated that a supplementary proposal 
would be made under separate cover as regards the list of key goods and technology 
for the oil and natural gas industry referred to in Article 8 of the proposed Regulation, 
which would be set out in Annex VI to the Regulation. 

The list of key goods and technology for the oil and natural gas industry referred to in 
Article  8  should  comprise  equipment,  materials,  software  and  technology  that  are 
crucial and indispensable for exploration, production, refining and liquefaction in the 
oil  and  natural  gas  industry  in  Iran.  The  list  should  identify  technical  parameters  to 
clarify the scope of control and avoid duplication with the lists in Annex I, II and IV. 

The  Commission  and  the  High  Representative  of  the  EU  for  Foreign  Affairs  and 
Security  Policy  propose  to  include  the  equipment  and  technology  set  out  in  this 
proposal in Annex VI of the prospective Regulation. 

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2010/0240 (NLE) 

Supplement to proposal COM(2010)459 for a 

COUNCIL REGULATION (EU) No …/2010 

on restrictive measures against Iran and repealing Regulation (EC) No 423/2007 

ANNEX VI 

List of key equipment and technology referred to in Article 8 

General Notes 

1. 

The object of the prohibitions contained in this Annex should not be defeated by the 
export  of  any  non-prohibited  goods  (including  plant)  containing  one  or  more 
prohibited  components  when  the  prohibited  component  or  components  are  the 
principal  element  of  the  goods  and  can  feasibly  be  removed  or  used  for  other 
purposes. 

N.B.:  In  judging  whether  the  prohibited  component  or  components  are  to  be 
considered  the  principal  element,  it  is  necessary  to  weigh  the  factors  of 
quantity,  value  and  technological  know-how  involved  and  other  special 
circumstances which might establish the prohibited component or components 
as the principal element of the goods being procured. 

2. 

Goods specified in this Annex include both new and used goods. 

General Technology Note (GTN) 

1. 

3. 

4. 

The  ‘technology’  ‘required’  for  the  ‘development’,  ‘production’  or  ‘use’  of 
prohibited goods remains under prohibition even when applicable to non-prohibited 
goods. 

Prohibitions do not apply to that ‘technology’ which is the minimum necessary for 
the installation, operation, maintenance (checking) and repair of those goods which 
are  not  prohibited  or  the  export  of  which  has  been  authorised  in  accordance  with 
Regulation (EC) No 423/2007 or this Regulation. 

Prohibitions  on  ‘technology’  transfer  do  not  apply  to  information  ‘in  the  public 
domain’, to ‘basic scientific research’ or to the minimum necessary information for 
patent applications. 

1. 

EXPLORATION AND PRODUCTION OF CRUDE OIL AND NATURAL GAS 

1.A  Equipment 

1. Geophysical  survey  equipment,  vehicles,  vessels  and aircraft  specially adapted to acquire 
data for oil and gas exploration together with the specially designed components therefor. 

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2.  Sensors  specially  designed  for  downhole  well  operations  in  oil  and  gas  wells,  including 
sensors used for measurement whilst drilling and the associated equipment specially designed 
to acquire and store data from such sensors. 

3.  Drilling  equipment  designed  to  drill  rock  formations  for  the  purpose  of  exploring  for,  or 
producing oil, gas and other naturally occurring, hydrocarbon materials.  

4. Drill bits, drill pipe, drill collars, centralisers, casing used for drilling and other equipment 
specially designed for use in and with oil and gas well drilling equipment. 

5. Drilling wellheads, blowout preventers and Christmas or production trees and the specially 
designed components thereof, meeting the API and ISO specifications for use with oil and gas 
wells. 

Technical notes: 

a.  A  blowout  preventer  is  a  device  typically  used  at  ground  level  (or  if  drilling 
underwater, at the seabed) during drilling to prevent the uncontrolled escape of oil 
and/or gas from the well.  

b. A Christmas tree or production tree is a device typically used to control flow of 
fluids from the well when it is complete and oil and/or gas production has started. 

c. 
'API  and  ISO  specification'  refers  to  the  American  Petroleum  Institute 
the  International  Standards 
specification  6A,  16A,  17D  and  11IW  and/or 
Organisation  specification  10423  and  13533  for  blowout  preventers,  wellhead  and 
christmas trees for use on oil and/or gas wells. 

6. Drilling and production platforms for crude oil and natural gas 

7. Vessels and barges incorporating drilling and/or petroleum processing equipment used for 
producing oil, gas and other naturally occurring flammable materials. 

8. Subsurface safety valve equipment meeting API and ISO specifications specially designed 
for use in oil and gas wells.  

Technical Note: 

'API and ISO specifications' refers to the American Petroleum Institute specification 
14A  and/or  the  International  Standards  Organisation  specification  10432  for 
subsurface safety valve equipment for use in oil and/or gas wells. 

9.  Liquid/gas  separators  meeting  API  specification  12J,  specially  designed  to  process  the 
production from an oil or gas well, to separate the petroleum liquids from any water and any 
gas from the liquids. 

10. Pipeline valves meeting API and ISO specifications for use in petroleum and natural gas 
industry pipeline transportation systems. 

Technical note: 

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'API and ISO specification' refers to the American Petroleum Institute specification 
6D and 6DSS  and/or the International Standards Organisation specification 14313 
and 14723 for pipeline valves 

11.  Pumps  and  gas  compressors  specially  designed  for  use  in  the  initial  processing  and 
transportation of crude oil and natural gas, and specially designed components therefor. 

1.B 

Test and inspection equipment 

1. Equipment specially designed for sampling, testing and analysing the properties of drilling 
mud, oil well cements and other materials specially designed and/or formulated for use in oil 
and gas wells. 

2.  Equipment  specially  designed  for  sampling,  testing  and  analysing  the  properties  of  rock 
samples,  liquid  and  gaseous  samples  and  other  materials  taken  from  an  oil  and/or  gas  well 
either during or after drilling, or from the initial processing facilities attached thereto. 

3. Equipment specially designed for collecting and interpreting information about the physical 
and mechanical condition of an oil and/or gas well, and for determining the in situ properties 
of the rock and reservoir formation. 

1.C  Materials 

1. Drilling muds, drilling mud additives and the components thereof specially formulated to 
stabilise  oil  and  gas  wells  during  drilling,  to  recover  drill  cuttings  to  the  surface  and  to 
lubricate and cool the drilling equipment in the well. 

2. Cements and other materials meeting the API and ISO specifications for use in oil and gas 
wells.  

Technical Note: 

'API  specification'  refers  to  the  American  Petroleum  Institute  specification  10A  or 
the  International  Standards  Organisation  specification  10426  for  oilwell  cements 
and  other  materials  specially  formulated  for  use  in  the  cementing  of  oil  and  gas 
wells. 

3. Corrosion inhibiting, emulsion treatment, defoaming agents, and other chemicals specially 
formulated to be used in the drilling for and the initial processing of petroleum produced from 
an oil and/or gas well. 

1.D.  Software 

1.  Software  specially  designed  to  collect  and  interpret  data  acquired  from  seismic, 
electromagnetic,  magnetic  or  gravity  surveys  for  the  purpose  of  establishing  oil  or  gas 
prospectivity. 

2.  Software  specially  designed  for  storing,  analysing  and  interpreting  information  acquired 
during  drilling  and  production  to  assess  the  physical  characteristics  and  behaviour  of  oil  or 
gas reservoirs. 

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3. Software specially designed for the use of petroleum production and processing facilities or 
specific sub-units of such facilities. 

1.E.  Technology 

1.  Key  technology  required  for  the  exploration  for  and  the  testing,  production,  initial 
processing and transportation of naturally occurring oil and gas. 

2. 

REFINING AND LIQUEFACTION 

2.A  Equipment  

1. Heat exchangers as follows and specially designed components therefor: 

a.  Plate-fin  heat  exchangers  with  a  surface/volume  ratio  greater  than  500  m2/m3, 

specially designed for pre-cooling of natural gas 

b. Coil-wound heat exchangers specially designed for liquefaction or sub-cooling of 

natural gas 

2.  Cryogenic  pumps  for  the  transport  of  media  at  a  temperature  below  -120 ºC  having  a 
transport capacity of more than 500 m3/h and specially designed components therefor  

3. “Coldbox” and “coldbox” equipment not specified by 2.A1 

Technical note:  

“coldbox” equipment’ refers to a specially designed construction, which is specific 
for  LNG  plants  and  incorporates  the  process  stage  of  liquefaction.  The  “coldbox” 
comprises  heat  exchangers,  piping,  other  instrumentation  and  thermal  insulators. 
The  temperature  inside  the  “coldbox”  is  around  –120  ºC  (conditions  for 
condensation of natural gas). The function of the “coldbox” is the thermal insulation 
of the above described equipment. 

4.  Equipment  for  shipping  terminals  of  liquefied  gases  having  a  temperature  below  
–120 ºC and specially designed components therefor 

5.  Flexible  and  non-flexible  transfer  line  having  a  diameter  greater  than  50  mm  for  the 
transport of media below –120 ºC  

6. Maritime vessels specially designed for the transport of LNG 

7. Cokers and refinery units for C5-C6 cuts isomerisation, and refinery units for alkylation of 
light olefins, to improve the octane index of the hydrocarbon cuts 

8. Electrostatic desalters specially designed to remove contaminants such as salts, solids and 
water from crude oil and specially designed components therefor 

9.  All  crackers,  including  hydrocrackers,  specially  designed  for  conversion  of  vacuum  gas 
oils, and specially designed components therefor 

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10.  Hydrotreaters  specially  designed  for  desulphurisation  of  gasoline  and  kerosene  and 
specially designed components therefor 

11. Catalytic reformers specially designed for conversion of desulphurised gasoline into high-
octane gasoline, and specially designed components therefore 

Technical note: 

Catalytic reforming comprises not only platforming but also isomerisation. 

12. Pumps specially designed for the transport of crude oil and secondary products, having a 
capacity of 50 m3/h or more and specially designed components therefor 

13.  Tubes  with  an  outer  diameter  of  0.2  mm  or  more  and  made  from  any  of  the  following 
materials: 

a. Stainless steels with 23% chromium or more by weight; 

b. Stainless steels with a minimum “elastic limit” of 210 N/mm2 or more; 

c.  Stainless  steels  and  nickel  bases  alloys  with  a  “Pitting  resistance  equivalent” 

number higher than 33. 

Technical notes: 

1)  “Elastic  limit”  is  a  mechanical  stress  at  which  a  material  begins  to  deform 
plastically 

2)  “Pitting  resistance  equivalent”  (PRE)  number  characterises  the  corrosion 
resistance  of  stainless  steels  and  nickel  alloys  to  pitting  or  crevice  corrosion.  The 
pitting resistance of stainless steels and nickel alloys is primarily determined by their 
compositions,  primarily:  chromium,  molybdenum,  and  nitrogen.  The  formula  to 
calculate the PRE number is: PRE = Cr + 3.3% Mo + 30% N 

14. “Pigs” and specially designed components therefore 

Technical note: 

Pig  is  a  device  typically  used  for  cleaning  or  inspection  of  a  pipeline  from  inside 
(corrosion state or crack formation) and is propelled by the pressure of the product 
in the pipeline. 

15. Pig launchers and pig catchers for the integration or removing of pigs 

16.  Tanks  for  the  storage  of  crude  oil  and  secondary  products  with  a  volume  greater  than 
1000 m3 (1 000 000 litres) as follows, and specially designed components therefor: 

a. fixed roof tanks 

b. floating roof tanks 

17.  Subsea  flexible  pipes  specially  designed  for  the  transportation  of  hydrocarbons  and 
injection fluids, water or gas, having a diameter greater than 50 mm 

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18. Flexible pipe used for high pressure for topside and subsea application 

19. Isomeration equipment specially designed for production of high-octane gasoline based on 
light hydrocarbons as feed. 

2.B  Materials 

1. Monoethylenglycol (CAS No: 107-21-1) 

2. N-Methylpyrrolidon (CAS No 872-50-4) 

3. Zeolites, of natural or synthetic origin, specially designed for fluid catalytic cracking 

4. Catalysts for the cracking and conversion of hydrocarbons as follows: 

a. 

Single metal (platinum group) on alumina type or on zeolite, specially designed 
for catalytic reforming process; 

b.  Mixed  metal  species  (platinum  in  combination  with  other  noble  metals)  on 

alumina type or on zeolite, specially designed for catalytic reforming process;  

c. 

d. 

Cobalt  and  nickel  catalysts  doped  with  molybdenum  on  alumina  type  or  on 
zeolite, specially designed for catalytic desulphurisation process; 

Palladium,  nickel,  chromium  and  tungsten  catalysts  on  alumina  type  or  on 
zeolite, specially designed for catalytic hydrocracking process. 

5. Gasoline additives specially formulated for increasing the octane number of gasoline. 

Note:  

This entry includes Ethyl tertiary butyl ether(ETBE) and Methyl tertiary butyl ether (MTBE) 

2.C 

Tests and inspection equipment 

1. Equipment specially designed for testing and analysing of quality (properties) of crude oil 
and secondary products. 

2. Interface control systems specially designed for controlling and optimising of the desalting 
process. 

2.D 

Software 

1. Software specially designed for the use of LNG plants or specific sub-units of such plants 

2.  Software  specially  designed  for  the  development,  production  or  use  of  plants  (including 
their sub-units) for oil refining 

2.E 

Technology 

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1. Technology for the purification of raw natural gas 

2.  Technology  for  the  liquefaction  of  natural  gas,  including  technology  required  for  the 
development, production or use of an LNG plant 

3. Technology for the shipment of liquefied natural gas 

4. Technology required for the development, production or use of maritime vessels specially 
designed for the transport of liquefied natural gas 

5. Technology required for the development, production or use of a refinery plant 

6. Technology for storage of crude oil and secondary products 

7. Technology for conversion of light olefin to gasoline 

8. Platforming and isomerisation technology 

9. Thermal cracking technology 

10. Claus technology for gas desulphurisation 

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