IRAN: it Pressures Eni, Omv to Commit to Deal

By Andrea R. Mihailescu May

Tehran wants Italy`s Eni and Austria`s OMV to commit to developing parts of the giant South Pars gas field project.

Iran has asked Eni to make a formal decision by July.

'Negotiations with Petropars and Eni (about developing phases 19 to 21 of South Pars) are going on,' said Akbar Torkan, managing director of Pars Oil and Gas Co.

Torkan said the company gave Eni a two-month deadline, after which it would decide which one of the companies would have the right to participate in the project.

Meanwhile, the U.S. ambassador to Austria warned OMV in official comments to the Austrian press that it could face possible sanctions if it committed to participating in the South Pars development.

Iran is struggling to keep its falling oil and gas exports from mature and producing fields high, which involves huge investments and access to advanced technology that it hoped to acquire from international oil companies.