Newspaper article The Evening Standard (London, England)

Crisis Shadow Hangs over Iran Oil Projects

Newspaper article The Evening Standard (London, England)

Crisis Shadow Hangs over Iran Oil Projects

Article excerpt

Byline: STEVE HAWKES

THE uncertainty caused by the Iraq war has yet to disappear, and the oil industry is already bracing itself for a crisis in Iran. This time, hawkish political rhetoric may blow a hole in plans by Shell and BP to expand in the country.

Prime Minister Tony Blair's rallying cry to stand firm on Tehran this week came days after Iranian oil minister Bijan Zanganeh revealed BP had been shortlisted for its first Iranian project - a $2 billion ([pounds sterling]1.25 billion) package at one of its best-known fields, Bangestan.

Shell is already three years into an $1.1 billion investment in two offshore developments in the Persian Gulf with estimated reserves of a billion barrels. It is also preparing to develop parts of the vast Iranian South Pars gas project.

For industry insiders, the possible repercussions of more sabre-rattling from Washington or London are clear, particularly if Europe follows the US lead and adopts tough sanctions against Iran to counter its perceived nuclear threat.

Bruce Evers, analyst at Investec, said: "It wouldn't go as far as Americans with Libya but there would be considerable pressure on the senior management of these companies not to do deals with these people. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.