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Iran gives ultimatum to Total, Shell

Iran has warned Royal Dutch Shell and Total if they fail to agree on developing South Pars gas field, it will put the projects on tender.

“Total and Shell have to (announce) their Foreign Investment Decision (FID) on development of phases 11 and 13 of South Pars gas field by June 20,” said managing director of the National Iranian Oil Company. “We are making required preparations for putting out the phases for tender,” Seifollah Jashnsaz told Fars News Agency. Iran would invite both investors from home and abroad to participate in the tender.

Royal Dutch Shell and Total earlier said, that they might miss the June deadline set by Iran to agree on developing the country’s South Pars gas field. Shell is conducting technical studies for developing the phase 13 of the giant South Pars gas field, while Total is mulling over developing Iran’s first liquefied natural gas (LNG) project, which would be fed by phase 11 of the gas field.

South Pars is one the biggest gas fields in the world, which extends under Iran and Qatar. According to Iran’s Pars Special Economic Energy Zone, the field contains nearly 48% of the country’s confirmed reserves. (Press Tv, Iran)