Manager of this natural gas processing project in the Persian Gulf island of Kharg Nader Rahimi said, "The problems created with the Environment Protection Organization and some local officials on the island have been resolved and the project has resumed".

"Implementation of the project will avert the flaring of some 700 million cubic meters of associated gases in the region," he said in a presstv report.

"This USD 5.1b project will be adding some USD 800m per year to the overall revenues of the country", the official added.

The project comprises a gas gathering scheme and processing on the island.

The gas would be used for the production of natural gas liquids (NGL) or for re-injections into the nearby oilfields to increase the crude output, both resulting in significant economic advantages for Iran.

According to the scope of the project, the associated gas from the oil fields in the northern parts of the Persian Gulf will be piped to Kharg island for further treatment. The gas would otherwise be flared and release dangerous pollutants in the ecosystem of the region.

In March 2007, it was reported that the Kharg NGL project had been suspended due to objections from the Kharg island environment officials, and because of plans to develop the north of the island for tourism.

Norway"s Statoil signed a Memorandum of Understanding (MoU) in August 2006 to cooperate in the project, and is believed to be providing some USD 300-400 million finance for the project. This involvement stems from commitments under the Kyoto protocol to reduce flaring of associated gases.