Spain's Repsol To Help Iran to Develop World No1 Gas Field

Repsol, the Spanish oil company, plans to sign a $4.3 billion agreement in Iran this week to help develop the world's biggest natural gas field.

The preliminary contract would allow Repsol and partner Royal Dutch Shell Plc to develop two blocks of Iran's South Pars deposit, according to a document obtained by Bloomberg News. The gas would feed a $2.5 billion liquefied natural gas plant to be built near the site, which may start exporting the fuel in 2011.

Securing LNG supply from Iran may help Repsol regain investor confidence a year after writing off 25 percent of its reserves because of declining production in Argentina.

“Everyone is looking into LNG so Repsol needs to be in that business too.” A Repsol spokeswoman, who wouldn't be identified, declined to comment. Wim van de Wiel and Andre Romeyn, press officials at Shell in The Hague, weren't immediately available for comment.