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PressTV Iran: Economic reasons delay Iran-Shell deal

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Economic obstacles hindering the multi billion dollar deal with Iran

Sat, 28 Jul 2007 22:48:31
Sources: Reuters, SHANA 

The Royal Dutch Shell multinational oil company says the delay in reaching a deal with Iran is due to economic issues rather than political developments.

“Economic obstacles are hindering the multi-billion dollar gas project,” Shana news agency cited Reuters quoting the CEO of Royal Dutch Shell, Jeroen van der Veer, as saying in a press conference.

Shell has been attempting to reach an agreement with Iran to carry out its first LNG project, to be fed by the giant South Pars gas field, in the energy-rich southern region of the country.

Van der Veer said that Shell needs to agree on a viable technical plan and financial terms with the Iranian party before it considers the political climate and possible UN sanctions on investment. “We have to make sure we make the economics of such a project right.”

Meanwhile, the Financial Times reported on Thursday that American shareholders of the company have criticized Shell over its investment plans in Iran.

Some US pension-fund investors have recently called on Shell and seven other oil enterprises, including Total to take the risky situation caused by recent political developments into consideration and revise their investment plans in Iran.

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