Iran and Shell end talks on stake in natural gas project
13-10-02 Shell Group, Europe's second-biggest oil company, won't be taking a stake in a $ 2 bn project to help Iran develop natural gas reserves in the Persian Gulf. Talks between the two ended, paving the way for negotiations with Statoil, said Bijan Zanganeh, Iran's oil minister.
The Norwegian company is expected to agree this month to invest about $ 400 mm in the project, he said.
Shell had said it was considering a stake in phases 6 to 8 of the so-called South Pars project after buying Enterprise Oil in June. UK-based Enterprise had been helping Iran outline the project and had an option to take about 20 %.
“Shell and Petro Pars agreed to have a friendly separation in this project,” Zanganeh said on the edge of a gas conference in Qatar. Kate Hill, a spokeswoman for the Anglo- Dutch company, confirmed that talks ended.
Iran, holder of the world's second-largest gas reserves, is seeking to diversify its economy away from oil by developing gas for export, to fuel power plants or as input forpetrochemicals. Phases 6 to 8 of South Pars will cost about $ 2 bn, Zanganeh said.
Source: Bloomberg.com
