AFP, Oslo, Aug 1, 2008 (excerpts) – Norwegian oil group StatoilHydro said on Friday it would not invest in any projects in Iran in the near future, as the US seeks more sanctions against Tehran if it fails to suspend its controversial nuclear activities.

“We are attentive to the situation in and around Iran, and to the applicable laws and regulations of the European Union and the United States,” chief executive Helge Lund said, adding: “StatoilHydro will not make any new investments in Iran at this time.”
StatoilHydro, a service contractor in the development of the South Pars gas field in Iran, had been considering taking part in the development of the Azar oil field.

The Norwegian state owns more than 62.5 percent in the company.

The Financial Times reported Friday that the Norwegian group had given in to pressure from Washington on the issue.

Several other Western oil companies have recently frozen their projects in Iran.

StatoilHydro said it would fulfill its outstanding obligations in the South Pars development until early 2009, but would gradually disengage itself from the project once it has recouped its costs for the project, Lund said.