AFX Europe (Focus): Repsol, Shell sign 4 bln usd gas contract with Iran govt - report (ShellNews.net)
Posted Sept 24 2004
MADRID (AFX) - Repsol YPF SA and Royal Dutch/Shell have reached an agreement with the Iranian Government to invest 4 bln usd in the extraction and marketing of natural gas from the country, El Pais reported without naming a source.
El Pais cited unnamed sector sources as saying that the agreement covers the construction of two gas platforms in the Persian Gulf and their corresponding processing and storage installations on the mainland, with the aim of producing 7 mln tonnes of LNG per year.
The newspaper said that state-run National Iranian oil Company (NIOC) will also participate in the contract, adding that the alliance is expected to start marketing the gas proceeding from the contract by 2010.
The project will involve the creation of an upstream company, in which Shell and Repsol will invest 1.5 bln usd, as well as a downstream company in which NIOC will hold a 50 pct share and the two oil companies 25 pct, El Pais said.
The initial investment for the downstream company has been set at 2.5 mln usd, the newspaper said.