Shell Signs Letter of Intent for Iran

A senior official with Anglo-Dutch Shell told Shana October 9 that his company has had intense talks with the National Petrochemical Company (NPC) for restoring its presence in Iran's energy projects and was about to sign a letter of intent in Tehran.

Senior country executive Hans Nijkamp said the letter was the result of very preliminary discussions the two companies have had about projects they could do together. "Shell is a company with a lot of experience in both advanced technologies and project management skills and we are concentrated on local content when we do our work," Nijkamp told Shana. He said gas-based cracker, diesel, and gas to liquids are some of the areas among many other things Shell can do in Iran.

Gas to liquids would solve the difficulty of piping gas out of Iran or liquefying it for shipment overseas. Shell already operates the Pearl GTL plant in Qatar, which also runs on very cheap feedstock gas from the North Field."This letter gives us the framework to have proper discussions with the NPC to have these detailed discussions on the confidentiality provisions and then decide what we will do together." He said more time is needed for signing an agreement with the NPC and although Shell was "very pleased that Iran is coming back to be a part of the global community." the situation remains "fragile."