Austria's energy giant OMV has signed a declaration of intent on an agreement with the National Iranian Oil Company (NIOC) to develop vast Iranian gas resources in the Persian Gulf.

A press release from OMV stated Saturday that this is the first time the Austrian energy group will develop gas projects in Iran. In 2001, OMV signed an agreement with NIOC to develop oil fields in western Iran.

"We have not yet concluded the gas deal," an OMV spokesman told the media. "The negotiations have just started and the concrete agreement might be signed at the end of 2007."

The spokesman added that "we are certainly concerned about the geo-political situation in the Middle East. However, as one of the enterprises of the European Union, we do business in line with EU and international law."

"That is our principle," the spokesman added. "Our business with Iran does not disobey those laws."

OMV is a leading energy group in central Europe. With 5,180 employees and an annual turnover of 18.97 billion euros, the company has spread its energy business into 18 countries around the world.

Source: Xinhua