Royal Dutch Shell PLC confirmed it has signed a memorandum of understanding with state-owned National Iranian Oil Co. “to further explore areas of potential cooperation” but Shell declined to discuss likely fields or possible investment levels.
Total SA in November reported it was negotiating an investment reportedly worth billions of dollars to develop South Pars natural gas field offshore Iran. Total said it is negotiating for a final deal.
The pending transaction marked the first Western energy investment in Iran since international sanctions were lifted earlier this year (OGJ Online, Nov. 8, 2016).
Details on Shell’s plans were very limited on Dec. 7. A Shell spokesman in London only told OGJ that the agreement is “nonbinding.”