United for Peace of Pierce County, WA - We nonviolently oppose the reliance on unilateral military actions rather than cooperative diplomacy.

In January 2007, Shell and Repsol of Spain signed an agreement to service phases 13 and 14 of South Pars, the gas field in Iran that is estimated to hold one tenth of the world's total gas reserves. -- Under the agreement, Shell and Repsol would each own 25% of a project called Persian LNG, with the National Iranian Oil Company holding the remainder and retaining ownership. -- (This may come as a surprise to those who imagine that non-U.S. companies that invest in Iran's oil industry face sanctions, but in fact sanctions against European Union companies have been waived since 1998 by successive U.S. administrations on national security grounds. In other words, the balance sheet of Royal Dutch Shell, the world's second most profitable business in terms of gross profits, which in fiscal 2005 amounted to $26.3bn on revenues of $306.7bn, is considered by the U.S. to be a matter of “national security.”) -- But Shell did not make a final decision in 2007 on whether to proceed with its plans for a multi-billion-dollar project to build a liquefied natural gas terminal capable of handling 8m tons a year, and on Wednesday Iran’s oil minister on Wednesday warned Shell and Repsol (as well as France's Total, which is interested in phase 11 of the gas field) that a June deadline to sign multi-billion dollar natural gas contracts would not be extended, the Financial Times of London reported.[1] -- At an annual international oil, gas, and petrochemicals exhibition, Gholam-Hossein Nozari said that Shell and Repsol could be replaced if they did not proceed with financing the projects. -- An article published by IRNA said Total had until June 20 to "clarify its stance."[2] -- Another Iranian oil official said the deadline for Shell and Repsol was April 18, according to the right-wing World Tribune.[3] -- On Tuesday, the Tehran Times reported that 500 energy companies participated in the 13th International Oil, Gas, and Petrochemicals Exhibition (April 16-20, 2008), and said that Iran's deputy oil minister cited the participation as proof of the ineffectiveness of economic sanctions against the Islamic Republic of Iran.[4] -- News of the conferences was virtually blacked out of Western media, which occasionally referred to "a conference" in Tehran but omitted any mention of its nature....

TEHRAN -- Iran’s oil minister on Wednesday warned Royal Dutch Shell, France’s Total, and Spain’s Repsol that the June deadline to sign multi-billion dollar natural gas contracts would not be extended.

“It is the last chance,” Gholam-Hossein Nozari said, reiterating he had urged officials to “finalize” the deals around mid-June on three phases of South Pars, the world’s biggest gas field.

Tehran urged the companies in October to finalize their deals by mid-2008 or lose the contracts, after they delayed investment because of soaring costs.

On the sidelines of an annual international oil, gas, and petrochemicals exhibition, Mr. Nozari said parliament had permitted his ministry to use 3 per cent of oil revenues, which stood at about $70bn (44bn euros, £35bn) last year, for development of South Pars.

He told reporters that the phases of South Pars being discussed with Total, Shell, and Repsol could be given to domestic contractors instead.

Tensions over the country’s nuclear program and heightened U.S. pressure on financial institutions and companies to halt business with Tehran have also undermined lucrative energy deals. Most Western companies try to execute a delicate balancing act to keep their foothold in Iran while not signing big contracts that jeopardize their interests in the U.S.

The oil minister admitted to exhibitors that “financing is the most important and the main challenge” ahead in developing the oil sector, which he said would need $500bn of investment over the next 16 years.

Iran has recently signed multi-billion dollar gas contracts with Chinese and Malaysian companies, stressing its options in Asia and threatening Westerners that the energy sector could not wait for them to make decisions on investments.

Some Iranian officials suggested Asian and other European companies could replace Total, Shell, and Repsol. “We still prefer these three companies to finish their jobs, but if they keep being slow their Swiss and Austrian friends may take over,” Hossein Noghrehkar Shirazi, deputy oil minister for international affairs, told the *Financial Times*.

A Repsol official at the exhibition said the Spanish company was “still interested” in phases 13 and 14 of South Pars and was “making progress” in its “very productive negotiations” with Iranian authorities.

“We are expecting some progress in a very short period of time,” the official said, asking not to be named. However, he complained that financing was the most difficult part of doing business with Iran and that, as a result of sanctions, the costs of transferring money were too high.

Oil experts say such delays in contracts and financial problems as a result of sanctions have dramatically postponed development of South Pars, which was part of the reason behind a shortage of gas last winter.

Separately, Iran this week extended its one-month supply of unsubsidized petrol outside the rationing system “until later notice.” To curb over-consumption and to fend off the possibility of sanctions on petrol, Iran engineered a rationing scheme last year.

Minister of Oil Gholam-Hossein Nozari said on Wednesday that Total of France should clarify its stance by June 20 at the latest if it seeks to cooperate in Phase 11 of South Pars development project.

Speaking to reporters on the sidelines of the 13th International Oil, Gas and Petrochemical Exhibition, he said that Total has openly declared that it is not willing to make a huge investment in Iran's oil industry in the current sensitive situation which is considered as their refusal to take part in Phase 11 of South Pars.

"Total of France has put forward a proposal to share in running the project but we still have not approved it and we want them to adopt the same pattern as they did in Phase 12 of South Pars," he pointed out.

"We have instructed Pars Oil and Gas Company to put on tender the remaining sections of the contract for the development of South Pars," he said.

"We believe that experienced Iranian contractors could handle the job," he said.

Total of France, Royal Dutch/Shell and other international oil companies have made large investment in developing the twelfth and thirteenth phases of South Pars gas field.

NICOSIA -- Iran has sent an April 18 deadline for two European majors to agree on a natural gas development project.

National Iranian Oil director Seifollah Jashnsaz said France's Total and Royal Dutch Shell have until April 18 to decide whether they would develop two Iranian gas projects in the Gulf.

The two Western companies, threatened with U.S. sanctions, have been hesitating over finalizing a deal to develop South Pars.

"The last deadline would be the end of Farvardin [the Iranian month that ends on April 18]," Jashnsaz said.

At the same time, Pars Oil and Gas Co. director Ali Vakili said the deadline for Total and Shell would expire at the end of June 2008. In March, Iranian Oil Minister Gholamhossein Nozari said Teheran would not extend the June deadline.

TEHRAN -- The active presence of world-class energy companies in the 13th International Oil, Gas, and Petrochemicals Exhibition (April 16-20, 2008) proves the ineffectiveness of economic sanctions against the Islamic Republic of Iran, the deputy Oil Minister for parliamentary affairs stated on Monday.

According to SHANA, Sekhavat Asadi added participation of some 500 energy companies from across the globe in the exhibition indicates that they are in disregard of pressures imposed by the world powers to isolate Iran from economic arenas.

The 13th Iran’s oil show is a welcome opportunity for domestic and foreign oil industries to showcase their capabilities and broaden their scope of activities.

The managing director of Norway's StatoilHydro company has voiced his company's readiness to have long-term cooperation with Iran, IRNA reported. In a bid to expand cooperation with the Islamic Republic, Yan Helgeh Escogen observed that the company will be presented in Iran's 13th International Oil, Gas, and Petrochemical Exhibition slated for 16-20 April. "Currently, the company is working on the three projects concerning phases six, seven, and eight of South Pars gas field, Anaran and Khorramabad," he said, adding the company is ready to study the new projects in Iran. Referring to the positive achievements of this company in Iran, he noted that StatoilHydro company enjoys good relations with National Iranian Oil Company and its partners in the South Pars gas field.