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News number: 8803191292

18:03 | 2009-06-09

Economy

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Iran: Shell, Repsol Offer New Gas Proposal

TEHRAN (FNA)- Royal Dutch Shell and Repsol have offered a new proposal on a major gas project in Iran's South Pars gas field, Iranian Oil Minister Gholam Hossein Nozari announced here on Tuesday.



"Shell and Repsol have offered a new proposal for initial production of Phase 13 and 14 of South Pars gas field," Nozari said, speaking at a press conference here in Tehran.

Earlier in April, Managing Director of the National Iranian Oil Company (NIOC) Seifollah Jashnsaz announced that Tehran has given Royal Dutch Shell and Spanish Respol a 45-day deadline (until may 20) to announce their decision and plan of action in the Persian LNG project.

"In the Latest meeting with officials from Shell and Respol, we offered them a 45-day deadline to declare their decision on phases 13 and 14 of the South Pars gas project," Jashnsaz said.

The Persian LNG project concerns development of production and exports of liquefied natural gas from a part of the South Pars field in the Persian Gulf. Repsol, Shell and state-run National Iranian Oil Company (NIOC) signed an initial deal in 2002 to develop Phase 13 of South Pars.

Last year, Shell delayed decisions on multi-billion dollar investments in Iranian LNG plans due to political tension. Repsol has large investments in Iran, which is also the world's fourth-largest oil producer.

Repsol and Shell signed a service contract for the Persian LNG project in January 2007, setting out the conditions for exploration and development operations in Phases 13 and 14 of South Pars.

Production from those phases would feed a future LNG plant that would have two liquefaction trains, each with capacity for 8.1 million tons/year, but a final investment decision had yet to be taken by the relevant oil firms.

The Iranian oil minister also in his Tuesday press conference noted that Iran has the capacity to produce 4.350 billion barrels of crude oil per day.

The capacity is significant for the country's influence in the Organization of Petroleum Exporting Countries (OPEC), he said.

He also referred to the plans for building 7 new refineries and optimization of the existing refineries, saying the programs will increase petrol production of the country to 190 million liters per day.