Business | Oil & Gas
Petronas still assessing Iran project
Malaysian firm reiterates its keen interest but shies away from pushing ahead with an investment
- Reuters
- Published: 23:39 July 15, 2008
Kuala Lumpur: Malaysian state oil firm Petronas is still assessing its involvement in Iran's Pars LNG project, days after its partner Total said it would not spend more money on Iranian gas for now.
Petronas, which contributed about 44 per cent to total government revenues, on Tuesday also posted a record net profit of $18.1 billion for the the year ended March 31, up from $12.9 billion a year ago.
Petronas reiterated its long-held view that it remained interested in Iranian gas but shied away from pushing ahead with an investment.
Yet, it said spiralling costs made an immediate decision impossible, not linking its decision to political tensions, like France's Total had done last week.
Total said it would not invest due to political tensions, making the French company the latest in a slew of European firms that have shelved immediate plans for multi-billion dollar Iranian liquefied natural gas export projects.
European and Asian energy firms had been keen to invest in Iran's gas industry, but have faced pressure from the US.
"We continue to be interested in operating in Iran. I have read the announcement by Total, but as Petronas we continue to be interested in Iran," CEO Hassan Marican said at a news conference for the results of Malaysia's largest firm.
"But on the LNG project specifically, where we are in a consortium with Total, I have said previously that we cannot come to a final decision on that particular project because of the increase in cost and because we have not completed our discussion with the Iranians," he added.
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