Petronas withdraws from $2b Iran project

Malaysia's Petronas has withdrawn its 20 per cent stake in a $2 billion (Dh7.34 billion) liquefied natural gas (LNG) project in Iran, an official was quoted as saying yesterday.

"Petronas officials have officially announced their lack of interest," Rokneddin Javadi, head of the National Iranian Gas Export Company, was quoted as saying in the Jam-e Jam newspaper, discussing the "Pars LNG" project.

"Petronas has ceded its 20 per cent 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 per cent.

Total said it had to make its mind up on whether to accept such an offer. "It is still under discussion and nothing is yet confirmed," a spokesman in Paris said.

Javadi was not immediately available to comment.

It had appeared earlier this month that Iran's President Mohammad Khatami had carved out a deal with Malaysian Prime Minister Abdullah Ahmad Badawi that Petronas should stay.

Petronas, which has said it was reconsidering its involvement on commercial terms, declined comment yesterday.

Iran's LNG projects are closely linked to the upstream development of the giant South Pars gas field in the Gulf. Total and Petronas are jointly looking to develop phase 11 of this field.