Royal Dutch Shell and Repsol are in discussions with the government of Iran to leave a $10 billion natural gas project, revealed media reports, citing Spanish newspaper Expansion.
The two companies are understood to be under pressure from the US to pull out of the Iran gas project. They fear sanctions from the US in case they go ahead with the deal.
Shell and Repsol want Iran to dismiss their current development plans for block 14 of the South Pars filed. However, they want the country to allow them to bid for other parts of the field in the future if the international political climate gets any better.
In case both the companies leave the deal, Gazprom, Indian Oil and Chinese groups could be waiting to move in. By the end of May 2008, Shell and Repsol should tell Iran whether or not they will take part in the project.