Petronas pulls out of Iran LNG development

Petronas withdrew 20% stake in US$2 billion liquefied natural gas (LNG) project in Iran.

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By  Rhys Jones Published  May 31, 2005

Petronas last week withdrew its 20% stake in a US$2 billion liquefied natural gas (LNG) project in Iran. Iran’s LNG projects are closely linked to the upstream development of the giant South Pars gas field in the Gulf. Petronas had said it was reconsidering its involvement on commercial terms. “Petronas officials have officially announced their lack of interest,” said Rokneddin Javadi, head of the National Iranian Gas Export Company. “Petronas has ceded its 20% interest and we intend, if there are no other partners, to give their shares to France’s Total,” he added. This would lift Total’s stake to 50%. Earlier this month it looked like Iran’s president Mohammad Khatami had carved out a deal with Malaysian prime minister Abdullah Ahmad Badawi that Petronas would retain its involvement in the project. Petronas was not available to comment whether it would be pursuing its interest in the upstream development. Total and Petronas are jointly looking to develop phase 11 of the South Pars field.

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