The Norgegian oil giant, which had been in talks over the development of Iran's huge Azar field
StatoilHydro has dropped plans to invest in Iran, the Financial Times quoted CEO Helge Lund as saying.
The Norgegian oil giant, which had been in talks over the development of Iran's huge Azar field, will announce on Friday that it will make no new investments.
"Having informed the authorities in Norway and the European Union and discussed the issue with the U.S., our view is that this position is in the best interests of shareholders and the company," Lund said.
Lund added that the company will soon reduce its involvement in the South Pars gas project, transferring control to Irans national oil company by early next year, after the project comes on stream.
U.S. authorities have in recent months led calls for intensified economic sanctions against Iran over the country's nuclear programme.
