Iran 'losing patience with Shell'

Shell has been told to commit itself to developing a $10 billion (£5 billion) gas field in Iran by June, or else risk losing the project to a rival.

Shell has been told to commit itself to developing a $10 billion (£5 billion) gas field in Iran by June, or else risk losing the project to a rival.

The energy company had delayed a final decision due to rising costs, but was also aware that such a move would create conflict with Washington at a time when tension is mounting over Tehran's uranium enrichment programme.

BP, Shell's UK rival, chose not to pursue business in Iran three years ago, stating that it was politically "not a flyer".

Iran's oil minister, Gholam Hossein Nozari, is losing patience with the company and has now given it an ultimatum.

"The deadline we have given to Total and Shell is June and it is the last chance we are giving them."

He added that after the deadline Tehran "will definitely make the final decision".

Shell has previously said that it would not make a decision until the end of the year due to the volatile investment environment.