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Iran Gives Two-Week Ultimatum To Shell, Repsol

South Pars gas field, near the southern Iranian port of Assalouyeh
Iran has reportedly given European oil giants Shell and Repsol two weeks to decide on their contracts to develop major gas fields.

The Mehr news agency quoted Reza Kasaeizadeh, the head of National Iranian Gas Export Company, as saying Spain's Repsol and Royal Dutch Shell need to decide on their investments in the South Pars gas project or they will be replaced by Iranian companies.

The two firms have delayed a decision on their investments amid Western sanctions against Tehran.

In 2007, Washington reportedly told Shell and Repsol, who have interests in the United States, that their projects in Iran would probably infringe U.S. law.

compiled from agency reports