TEHRAN (PIN) -- Energy giant Royal Dutch Shell is reportedly hesitating to seal a lucrative oil deal with Iran amid fears that it could outrage the U.S.

Shell, Europe’s largest oil and gas company, teamed up with Spain’s Repsol to sign a preliminary deal with Tehran to invest $10 billion to develop two phases of Iran’s huge South Pars gas field.
In light of political opposition from the Bush administration, the Anglo-Dutch giant then claimed it might be a year away from knowing whether to proceed; a timescale that the company’s chief executive Jeroen van de Veer repeated six months later, the Daily Telegraph reported.
Company insiders now say Shell is still 12 months away from a decision, the report added.
This is while other rivals seek to seal energy contracts with the oil-rich country. Tehran has called on all companies interested in investing in the country’s energy sector to submit their plans by June.
Although sources claim Shell is having difficulty drawing up an investment plan because of the high costs of labor and equipment, some analysts say the pressure exerted by the White House has caused Shell to hesitate.
Despite U.S. opposition, China’s Sinopec recently signed a $2 billion agreement to develop the Yadavaran oilfield.
“Various companies are continuing to invest in Iran. We are witnessing the full presence of foreign investments in the country,” Iranian Oil Minister Gholamhossein Nozari said after signing the deal.
“The other message this contract has is that if other countries intend to invest in our major oil and gas fields, they should not waste time, otherwise they will surely lose investment opportunities in Iran,” he said.