Setting the wheels in motion: Iran pushes Turkey to seal deal
Iran pushes South Pars deadline on Turkey
Tehran has given state oil company Turkish Petroleum a one-month deadline to finalise a $3.5 billion deal to develop part of the world's largest gas field in Iran, according to reports.
The Turkish and Iranian governments agreed in July 2007 that Turkish Petroleum would produce an annual 20.4 billion cubic metres of natural gas from three development phases of Iran's South Pars gas field.
The deal has been delayed amid objections from Turkey's ally the US, which opposes new energy deals in Iran as part of efforts to isolate Tehran over its nuclear programme.
The semi-official Mehr news agency of Iran said the head of the Pars Oil and Gas Company on Sunday gave TPAO a one month deadline to finalise the contract for phases 22, 23 and 24 of South Pars.
The Turkish industry source confirmed the report, speaking on condition his name was not used.
"It is a difficult situation for companies because of the uncertainty ... amid recent developments in Iran's nuclear programme," he said to Reuters, when asked what had caused the delay.
Iran is Turkey's second-biggest supplier of natural gas after Russia.
Turkey has said that Iranian fuel can help supply the planned Nabucco gas pipeline to supply Europe with gas and lessen the continent's dependence on Russian supplies.