TEHRAN – A Singapore-based subsidiary of a Chinese oil field services company has agreed to pay $415,350 to settle claims that it violated U.S. sanctions against Iran by exporting oil rig supplies from the U.S. that allegedly ended up in Iranian territorial waters, the U.S. Treasury Department announced Thursday.

COSL Singapore Ltd., a subsidiary of China Oilfield Service Ltd., agreed to pay the money to settle its 55 alleged violations of the Iranian Transactions and Sanctions Regulations from October 2011 to February 2013.

COSL Singapore has several oil rigs in its fleet and enters into time charter agreements with third-party drilling companies to allow the third-party drilling companies to use the oil rigs for their drilling operations for a specified term and within a specified territory. COSL Singapore provides the oil rig and oil rig crews to the third-party drilling companies and is responsible for maintaining the oil rig, including by procuring equipment and spare parts for the oil rig’s operations. 

OFAC determined that COSL Singapore did not voluntarily disclose the apparent violations and that the apparent violations constitute a non-egregious case. The statutory maximum penalty amount for the apparent violations is $13,750,000, and the base penalty amount for the apparent violations is $923,000.