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ENI Still in Talks Over Iran Oilfield-Official

Source: Reuters 2/3/2010, Location: Asia

Italy's ENI SpA has not withdrawn from talks over developing the third phase of Iran's Darkhovin oil field, the managing director of the National Iranian Oil Company (NIOC) was quoted.

"Negotiations continue with Italy's ENI for developing the third phase of Darkhovin," Seifollah Jashnsaz said on the state news agency IRNA. "ENI has not withdrawn from the project."

Italy's prime minister Silvo Berlusconi said that ENI had cancelled an unspecified third development phase in Iran and state-controlled ENI, which has fields at Darkhovin and the South Pars offshore site, declined to comment on the remarks.

An analyst who spoke on condition of anonymity on Tuesday said he believed the field in question was Darkhovin. Eni had upgrading plans to bring on line 14,000 extra barrels of oil per day.

Italy has been one of Iran's main trading partners in Europe but Berlusconi's close ties with Israel, as well as diplomatic pressure over the nuclear dispute with Tehran, have led to a sharp reduction in Italian investments in the country. (Editing by David Holmes)

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