Iran rejects ultimatum for South Pars

News wires

Iranian Oil Minister Gholam Hossein Nozari said today that Iran did issue an ultimatum to Total and Shell over the South Pars gas field.

Iran was previously reported to have given the two companies an ultimatum, saying they must decide whether to invest in the field or the project would go ahead without them.

"Iran has issued no ultimatum to Total and Shell on the development of offshore South Pars gas field," Mehr News Agency reported, citing Nozari.

"The presence of these companies in the South Pars phases of 11 and 13 is being carried out as per schedule," he said.

Nozari said "the West argues that Iran is expelling Total and Shell", but no ultimatum has been given to them.

Shell and Total have said rising industry costs had delayed their multi-billion dollar investments in Iran's first liquefied natural gas project, which would be fed by the South Pars field, a Reuters report said.

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02 May 2008 18:38 GMT  | last updated: 04 May 2008 09:29 GMT