RPT-UPDATE 2-StatoilHydro to halt new investments in Iran

Fri Aug 1, 2008 11:20am BST
 
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By Aasa Christine Stoltz

OSLO, Aug 1 (Reuters) - Norwegian oil and gas group StatoilHydro confirmed on Friday it will not make any new investments in Iran, following pressure from the United States to isolate the Islamic Republic over its nuclear ambitions.

StatoilHydro (STL.OL), the latest in a series of foreign companies to back away from Iranian investment as perceived risk to investors has grown, said it would honour existing contracts.

Chief Executive Helge Lund said the company is in dialogue with U.S. and European authorities about the status of its activities in Iran, where it is the offshore operator for development phases 6-8 on the South Pars gas field in the Gulf.

"We are familiar with laws and regulations in the United States and the European Union, and will not make any new investments in Iran in today's situation," Lund said.

"First and foremost, StatoilHydro will see through its contractual obligations in Iran," Lund told reporters after the group reported forecast-beating second-quarter profits. "We will deliver some projects for the national oil company in Iran."

StatoilHydro had been in talks to develop and invest in the Anaran project in the Azar oil field in Iran, talks that are now halted.

France's Total (TOTF.PA) said earlier this year it would spend no more money on Iranian gas projects for now. But it reaffirmed that Iran remains a priority country for the company.  Continued...

 

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