2nd UPDATE:Iran Progressing In Talks With Shell,Repsol-Agency
October 14 2009 - 2:04PM
Dow Jones News
Iran is making good progress in talks with Royal Dutch Shell PLC
(RDSB) and Repsol SA (REP) on a key production and liquefaction
scheme called Persian LNG, an Iranian news agency said Wednesday,
quoting a top official.
The statement comes as Iran is stepping up publicity around
foreign oil talks amidst rising tensions with the West over its
nuclear program. But years of negotiations with European companies
have yet to yield any final deal.
"Negotiations with Shell and Repsol in recent weeks have gone in
the desired direction and efforts are being made to take action as
quickly as possible given the mutual interests in this field,"
Seifollah Jashnsaz, managing director of the National Iranian Oil
Co., was quoted as saying by the ISNA agency.
The Persian LNG project consists of the development of the
phases 13 and 14 of South Pars Gas field and the construction of
two LNG trains, each with a capacity of 8.1 million metric tons a
year.
Shell didn't return a request for comment and Repsol couldn't be
reached.
The statement comes after Iran said Monday that talks with
France's Total SA (TOT) had resumed on South Pars phase 11, which
is tied to the Pars LNG export scheme. Total has declined to
comment.
Total, Shell and Repsol have so far refrained from signing final
commitments to implement the projects, after coming under pressure
from the U.S.
On Monday, the Iranian Offshore Oil Co. also said it is in talks
with RAK Gas Co. to export natural gas to Ras al-Khaimah, a small
member of the United Arab Emirates. But a person close to the RAK
emirate said late Tuesday it is not holding any "meaningful" talks
with Iran over gas exports.
The person said UAE officials were concerned Iran was trying to
scuttle a nuclear cooperation agreement with the U.S. by
overplaying its own contacts with the emirates.
Due to U.S.-imposed sanctions, Iran has been unable to grow into
a global gas power, despite holding the world's second-largest
reserves.
Recently, Washington and its Western allies have called for even
tougher sanctions unless Iran allays international concerns that it
is seeking nuclear weapons. Iran says its nuclear program is
peaceful.
The tensions have already led to renewed pressure in the West
against dealing with Iranian companies.
The U.K. government Monday ordered U.K. financial companies to
stop trading with two Iranian firms, Bank Mellat and the Islamic
Republic of Iran Shipping Lines and some European companies have
quietly dropped their gasoline sales to Iran.
-By Benoit Faucon and Reza Amanat, Dow Jones Newswires;
+44-20-7842-9266; benoit.faucon@dowjones.com