$1.6bn Iran Gas Deal

A consortium of South Korea's LG and Iran's OIEC signs a long-delayed $1.6bn contract for the construction of gas processing facilities for Iran's South Pars field.

LG is going to have a stake of around 40 per cent in the project to develop phases nine and 10 of the vast offshore field in the Persian Gulf. Samsung and Daewoo may also join the consortium.

LG and OIEC won the tender in competition with France's Technip and Iran's Sunfire nine month ago. But the signing was delayed because of the political controversies that have engulfed Iran's oil ministry.

The major oil and gas companies bidding for projects in Iran are not hopeful that the long-awaited deal with LG will usher in a new wave of contracts.

The signing ceremony, to be held in Tehran, is to be attended by South Korea's construction and transport minister.

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&to=http://www.lg.co.kr/english/index.jsp' target=_blank>LG

&to=http://www.oiec.ir/About%20oiec_new.htm' target=_blank>OIEC