Iran says no ultimatum over South Pars-agency

Reuters: Iran has not issued an ultimatum to Total and Royal Dutch Shell over the development of its giant South Pars gas field, Iranian Oil Minister Gholamhossein Nozari was quoted as saying on Friday.

TEHRAN, May 2 (Reuters) – Iran has not issued an ultimatum to Total and Royal Dutch Shell over the development of its giant South Pars gas field, Iranian Oil Minister Gholamhossein Nozari was quoted as saying on Friday.

Iran was previously reported to have given the two majors an ultimatum, saying they must decide whether to invest in the field or the project would go ahead without them.

"Iran has issued no ultimatum to Total and Shell on the development of offshore South Pars gas field," Mehr News Agency reported, citing Nozari.

"The presence of these companies in the South Pars phases of 11 and 13 is being carried out as per schedule," he was quoted as saying.

"The West argues that Iran is expelling Total and Shell … no ultimatum has been issued to them."

Shell and Total have said rising industry costs had delayed their multi-billion dollar investments in Iran's first liquefied natural gas (LNG) project, which would be fed by the South Pars field.

(Reporting by Edmund Blair)