Oil majors propose South Pars gas replacement

The UK/Dutch Shell Group and Spain's Repsol have held talks with Iran's Oil Ministry about replacing their South Pars phase 13 project with another gas project in the country.

National Iranian Gas Export Company (Nigec) managing director Iraj Hamedizad told Iran's official energy news agency, Shana, that the ministry held a meeting with the two Western oil majors last month who proposed replacing phase 13.

"Consequently a meeting was held after Nowrouz holidays and Shell and Repsol… represented a proposal which is under survey right now," he said.

The development comes after Shell said it was unlikely to commit to the gas project by the June deadline set by Tehran due to concerns over the political and financial situation in the country (MEED 18:4:08).

Shell chief executive officer Jeroen van der Veer was expected to meet with Iran's Oil Minister Gholamhossein Nozari earlier this week in Rome at an energy forum.