Shell withdraws from Iranian gas project
Published: May 12, 2008 at 7:07 AM
THE HAGUE, Netherlands, May 12 (UPI) -- Oil giant Royal Dutch Shell announced Monday it would withdraw from a $10 billion Iranian natural gas development project.
Shell, along with Spanish oil company Repsol, had agreed to participate in several phases of development of a huge gas field at South Pars. But a company release Monday said it would allow for "the principle of substitution," which would let other companies take its place, The Times of London reported.
Industry analysts said Shell's pullout was a reaction to political pressure from the United States, which is suspicious Iran is developing nuclear weapons.
Shell also said it would consider participating in future phases of the project, the Times said.
French oil company Total, also involved in gas development in Iran, said it would continue with its projects at South Pars, the newspaper reported.
Shell, along with Spanish oil company Repsol, had agreed to participate in several phases of development of a huge gas field at South Pars. But a company release Monday said it would allow for "the principle of substitution," which would let other companies take its place, The Times of London reported.
Industry analysts said Shell's pullout was a reaction to political pressure from the United States, which is suspicious Iran is developing nuclear weapons.
Shell also said it would consider participating in future phases of the project, the Times said.
French oil company Total, also involved in gas development in Iran, said it would continue with its projects at South Pars, the newspaper reported.
© 2008 United Press International. All Rights Reserved.
This material may not be reproduced, redistributed, or manipulated in any form.
This material may not be reproduced, redistributed, or manipulated in any form.
» Next in Business:
British Gas to raise prices, company warns
Latest Headlines
Most Popular