Petronas may pull out of Iran project

Petronas may pull out of Iran project

Malaysia's national oil firm Petronas may withdraw from a US$2 billion joint-venture to develop Iran's Pars liquefied natural gas project, a top company official said on Monday.

"We may withdraw from the Iran LNG project if the commercial terms do not meet our investment criteria," Petronas president and chief executive Mohamad Hassan Marican told reporters.

Petronas has a 20 percent stake in the Pars LNG production company set up last year to build a two billion dollar liquefaction facility in Iran. France's Total SA has an 30 percent stake while the National Iranian Gas Export Company holds the remaining 50 percent.

Hassan said Petronas would make a decision on the matter "soon" but declined to elaborate.

Malaysian Prime Minister Abdullah Ahmad Badawi will visit Iran May 11-13 to boost bilateral ties and cooperation, the foreign ministry said on Sunday.

"It is a bilateral trip. There are certain things the prime minister wants to promote between Malaysia and Iran," Foreign Minister Syed Hamid Albar said on Monday.

The two phases of the gas exploration project are expected to produce two billion cubic feet of gas and 80,000 barrels of condensate per day from 20 wells.

Hassan also said that Petronas was interested in bidding for eight oil and gas blocks in India.

"We are interested in making a bid for oil and gas blocks in India," he said.-- AFP