Shell to Decide on Iran's Persian LNG Project in 2007

Royal Dutch Shell PLC is to decide in 2007 whether to invest in Iran's Persian LNG project, its chief executive said on May 4. Speaking at a press conference, Jeroen van der Veer said "we are aware of the short-term developments," referring to international tensions surrounding the country's nuclear program. But he added "we intend to make a decision in the year 2007." In 2004, the National Iranian Oil Co. signed a framework deal in 2004 with Shell and Repsol YPF SA to form the Persian LNG production company, linked to the development of phase 13 of South Pars and valued at $1.5b. But no final investment has been made so far. Regarding Shell's plans in neighboring Iraq, van der Veer said the company would need a legal framework on petroleum in place in the country before investing. "We are more on less at a standstill," he said. A still-to-be-formed Iraqi government will be tasked to devise a petroleum law, which will regulate foreign investment in the sector. (Source: MarketWatch)