>> NOTE: Iran, Russia, and Qatar hold over 1/2 of the Worlds known Gas
>> Reserves...............
>> 
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>> http://business.guardian.co.uk/story/0,,2001512,00.html
>> 5:45pm
>> Shell defies US pressure and signs £5bn Iranian gas deal
>>
>> Terry Macalister
>> Monday January 29, 2007
>> Guardian Unlimited
>>
>>
>> Shell has signed an important deal to help Iran develop a major gas
>> field, ignoring growing pressure from George Bush to isolate the
>> country for being part of what he alleges is an "axis of evil".
>>
>> The Anglo-Dutch group, which is struggling to bring more momentum to
>> its business after being forced to hand over vital Russian reserves 
at
>> Sakhalin island to the Kremlin, confirmed it had finally reached
>> agreement on various aspects of its "Persian LNG" - liquefied 
natural
>> gas - project centred on the South Pars gas field.
>>
>>  Shell insisted last night it was still a year away from a final
>> decision on whether to proceed with the multi-billion-dollar project 
to
>> build a liquefied natural gas terminal capable of handling 8m tonnes 
a
>> year.
>>
>> "We have signed an upstream service agreement as part of our work to
>> assess the feasibility of the project," a spokeswoman said, 
referring
>> to the production deal. "Implementation of the upstream service
>> agreement is subject to taking a final decision to proceed with the
>> midstream LNG project."
>>
>> The move is a bold one by Shell because its arch-rival BP has 
declared
>> itself unwilling to invest in Iran at a time when the international
>> political climate surrounding the country is so forbidding.
>>
>> The United Nations has imposed limited sanctions on Iran to stop it
>> enriching uranium and Washington is pushing for harsher sanctions
>> against a programme it believes is aimed at building an atom bomb - 
an
>> accusation Tehran rejects.
>>
>> Washington has increased pressure on non-US companies in the past 
year
>> not to invest in Iran and some analysts believe it could be hard for
>> oil companies to maintain operations in both Iran and the United >> States, where Shell and its Spanish partner Repsol both have fields.
>>
>> Fadel Gheit, oil analyst with the Oppenheimer & Co brokerage in New >> York, said Shell was right to proceed in Iran. "This is very 
positive
>> for the company because those that get in at an early stage will be
>> rewarded. They are clearly willing to ignore Bush because he is 
coming
>> to the end of his presidency and when he goes everything could 
change."
>>
>> On Sunday, Gholamhossein Nozari, head of the state-owned National
>> Iranian Oil Company, told Iran's student news agency ISNA that Iran 
had
>> signed an initial deal worth $10bn (£5bn) with Repsol and Shell to
>> produce liquefied natural gas from the South Pars field.
>>
>> The Shell spokeswoman said the upstream side of the project would be
>> developed under a buyback agreement. Shell and Repsol would build 
the
>> production facilities, which would be owned and operated by an 
Iranian
>> company. Shell and Repsol would be paid back their costs plus a
>> pre-agreed profit.
>>
>> Separately yesterday, Shell agreed to sell its Los Angeles refinery 
to
>> Texan oil firm Tesoro in a deal worth nearly $2bn.
>>
>>
>> 
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>>