Shell to supply Iranian gas to Europe, Asia
Royal Dutch Shell is eyeing opportunities to develop gas projects in Iran and export gas to Europe, especially as European consumers are looking to diversify their gas suppliers and reduce dependence on Russian gas.
Tehran has the potential to play a major role in the gas export industry, local press cited Yves Merer, chairman of Shell Development Iran, as saying Thursday.
Looking at the national 20 Year Outlook Plan, Iran has the potential to assume 7 to 8 percent of the global gas markets.
"The objective can be realized, upon making correct decisions," Merer said.
Iran holds the world's second-largest natural gas reserves after Russia, with an estimated 940 trillion cubic feet in proven gas reserves, according to the Oil and Gas Journal.
With more than 60 percent of its gas located in non-associated fields, much of which has not been developed, Iran has a budding future in gas development.
Shell is looking to work with Iran to supply gas to European and Asian consumers.
"Besides the European markets, Shell has taken steps on purchasing products to the Near East countries such as India, and Far East states like China, Japan, and Korea," Merer added.
Iran agrees to help Venezuela build oil refinery
Tehran and Caracas secured a deal to build an oil refinery in Venezuela's Faga region in the oil-rich Orinoko province, according to local media reports Wednesday.
Under the agreement, the refinery will refine heavy oil and produce gasoline and other oil derivatives.
An official from Venezuela's Petroleos said the deal will benefit both countries, adding that the heavy oil in the region could easily be refined at which time Iran will import gasoline from Venezuela.
Iran imports more than 40 percent of its gasoline and diesel products, mostly from the Middle East but also from as far away as Venezuela.
Iran has a shortage of refining capacity to produce gasoline, resulting in the need for significant levels of gasoline imports.
Iranian Oil Minister Kazem Vaziri Hamaneh arrived in Caracas for the 140th OPEC meeting scheduled to start on June 1.
OPEC members will hold talks to discuss the latest developments in the global oil market, including oil price and the possibility of OPEC fixing a new ceiling for oil production.
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Petrobras, Shell seal 140M downstream deal
Brazil's federal energy company Petrobras has secured a deal to acquire Royal Dutch Shell's downstream assets in Uruguay for a $140 million takeover of Shell's assets in three countries in the region, Petrobras said in a statement.
Under the agreement, Petrobras announced last December it will also acquire Shell's downstream assets in Paraguay and Colombia.
The agreement takes account of the acquisition of Paraguayan assets, including 132 retail fuel outlets and liquefied petroleum gas distribution units.
Petrobras has assumed operational control of the 89 service stations and aviation fuel outlets in Uruguay. The process in terms of operational standards will be ongoing over the next 12 months, the statement said.
On June 1, Petrobras also concluded the acquisition of a 51 percent controlling stake in Uruguayan gas distribution company Gaseba from French gas company Gaz de France for $13 million, Brazilian press reported.
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Closing oil prices, June 2, 3 p.m. London
Brent crude oil: $68.28
West Texas Intermediate crude oil: $70.15
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