DUBAI Iran is still in talks with France's Elf Aquitaine and Italy's Agip on developing the Doroud gas field and has not yet signed a memorandum of understanding, an Iranian oil source said on Wednesday. The memorandum of understanding between the National Iranian Oil Co (NIOC) and Elf and Agip that was reported has not been signed yet, the source told Reuters. Discussions are continuing.

The London-based daily Al-Hayat reported on Wednesday that NIOC had signed a MoU with the two European companies in April on developing the Doroud gas field off the coast of Iran. If the Doroud deal comes off, projected Italian investment of $40 million is seen in 1999. U.S. sanctions laws are major sticking points in relations between the European Union and the United States. EU sources say European Union and U.S. negotiators still have to bridge some key gaps if they are to resolve the dispute over the laws in time for a U.S.-EU summit next Monday. (Reuter)