AFP: The Spanish oil group Repsol YPF and British-Dutch group Shell have signed a project framework agreement involving the Iranian oil company NIOC regarding liquefied natural gas in Iran, Repsol said on Thursday.
Spain's El Pais newspaper reported earlier that Repsol and Shell had signed an agreement worth $3.96 billion dollars with Iran to exploit natural gas reserves. AFP

MADRID - The Spanish oil group Repsol YPF and British-Dutch group Shell have signed a project framework agreement involving the Iranian oil company NIOC regarding liquefied natural gas in Iran, Repsol said on Thursday.

Spain's El Pais newspaper reported earlier that Repsol and Shell had signed an agreement worth $3.96 billion dollars with Iran to exploit natural gas reserves.

The National Iranian Oil Company (NIOC) was associated with the contract signed in Vienna last week, the report said.

A Repsol YPF spokesman said: "I can confirm that we and Shell have reached a project framework agreement with the NIOC to study an LNG project in Iran", but added that he could not confirm the size of the likely investment in the project.

"The agreement has been signed, but before we can proceed to the next stage, this has to be approved by the Iranian authorities," the Repsol YPF spokesman said.

El Pais said that about $4 billion would be required for the extraction and marketing of natural gas from Iran.