DOHA (Reuters) – Iran is unconcerned by U.S. opposition to international investment in its oil and gas reserves and good progress is being made on planned projects, Iran's oil minister said on Monday.

U.S. Energy Secretary Sam Bodman said doing business with Iran encouraged its nuclear ambitions when asked for his reaction to a proposed $7 billion gas pipeline deal between Iran, Pakistan, and India.

But Iranian Oil Minister Kazem Vaziri said his foreign investment partners were undeterred.

"The truth is that investment in Iran is going well and we are not concerned," Vaziri said on the sidelines of the International Energy Forum in Doha.

Referring specifically to the planned pipeline he said his Pakistani and Indian counterparts were still on board. "We had a meeting with our counterparts from India and Pakistan the day before yesterday. They are willing to have this project and we are also willing to do this project together, and hopefully this will be done."

He also said planned projects with China and Japan were moving forward.

Japan's INPEX signed a deal for Azadegan in February 2004, but work has been held up rising project costs, particularly for steel.

"Already we had the opportunity to have a talk with the minister of energy of Japan," said Vaziri. "We have a written commitment and ... they have decided this is one of the most important energy projects that they have."

A multi-billion-dollar deal for China to buy LNG from Iran in exchange for access to the giant Yadavaran oilfield has also been delayed as the two sides have failed to agree on final terms.

Under the proposed deal, Sinopec Group, state-owned parent of listed Sinopec Corp., agreed in October 2004 to take the lead in developing the Yadavaran oilfield and to buy 10 million tons of liquefied natural gas (LNG) a year for 25 years in a deal worth as much as $100 billion.

The two sides have so failed to agree on final terms, but Vaziri said a contract was now being prepared and an Iranian delegation could be soon heading to China.

"We are in the initial stages of preparing the contract," he said.

Oil prices have hit a record level of more than $75 a barrel, driven by fears of possible U.S. military action against Iran, which stands accused of seeking to develop nuclear weapons.

Iran says it only wants to produce electricity and that nuclear power would help to ease tight energy markets.

"This will save oil and gas that we are consuming and that will be available in the international market and that is one idea for going for nuclear energy," said Vaziri.