TEHRAN (PIN) – Pars Oil and Gas Company (POGC) announced it had studied the technical proposals of Italian company Eni for upstream sector and of Iran’s Petropars for development of phases 19-21 of South Pars field.

“As Eni plans to install facilities to convert gas produced by the phases to liquefied natural gas (LNG), the task has become complicated,” added the company.
The two sides have started negotiations on the LNG issue, but they have yet to reach an agreement.
They, however, outlined a framework for the upstream operations of phases 19-21 and the related technical issues have been discussed.
Petropars has also bid for the tender on development of the three phases. The company has not offered any plan on transformation of gas to LNG and its technical proposal has been studied.
Despite U.S. pressure and sanctions against Iran, more countries have expressed their interest in investing in the country’s oil and gas projects.
Turkey is to develop phases 22-24 of South Pars field.
Three companies from Germany, France, and Switzerland have called for joint investment in the phases with Turkey.
The value of Iran-Japan underway projects in the current Iranian year (started March 21, 2007) stands at 9.5 billion dollars, promising a brisk bilateral trade, said Iranian ambassador to Tokyo.
Japan invests 3.5 billion dollars in the phases 6-8 of South Pars field, added Mohsen Talaii, vowing that Iran’s gas exports will soar to a great deal and exports problems will be ironed out when the trio come on stream.
China has proposed to make a primary investment of 35 billion dollars in the North Pars field development project.
Royal Dutch Shell’s Chief Executive Officer Jeroen van der Veer said there were no plans to halt preparatory work on possible investments in Iran, despite renewed pressure about the risks of operating in a country where America has imposed economic sanctions.
As he unveiled a 20 percent rise in second-quarter profits, the CEO said a final decision about whether to embark on the huge gas project was still 12 months away, but work would continue.
Some U.S. pension funds have written to Shell and seven other energy giants about the likely consequences of business links with Tehran.
It followed veiled warnings that any investment in Iran would earn Washington’s disapproval.
But van der Veer said, “Our architects will continue to do their work there.”
He added rising industry costs and negotiation on deal terms had delayed a planned multibillion dollar investment in Iran, rather than the threat of sanctions.
Shell has been in talks for years about building Iran’s first liquefied natural gas project, which will be fed by the giant South Pars gas field