Iran says it is ready to address the concerns of western oil groups that have blamed spiralling global costs for delays in signing up to multibillion dollar contracts to develop the South Pars natural gas field.

“The increase in international [construction costs] and [the] fall in the dollar are logical concerns of companies which can be met through negotiations, provided illogical demands are not mixed with them,” said Ali Vakili, managing director of the Pars Oil and Gas Company, which handles development of the South and North Pars gas fields.