Iranian Oil Minister Masoud Mirkazemi yesterday threatened that Iran would kick out foreign firms for delaying the development of its massive South Pars gas field and replace them with domestic companies.

Mirkazemi did not name any foreign company, but his threat comes just days after Iran's elite Revolutionary Guards Corps boasted it could take over projects from Western firms such as Total and Shell in South Pars.

"We have recently told some foreign firms which have delayed (development of) some phases (in South Pars) for several years, that we would not negotiate with them and domestic firms will be given these projects to implement," Mirkazemi was quoted as saying by Mehr news agency.

Several foreign companies have stopped making new investments in Iran's energy sector amid Western pressure for new sanctions against Tehran because it continues to pursue its controversial nuclear programme.

Iran is OPEC's second largest crude oil exporter and also holds one of the largest gas reserves in the world. It has planned a massive $200-billion investment in the energy sector over a five-year period to 2015.

Mirkazemi said yesterday, without elaborating, that the Islamic republic was facing "shortage of funds for implementing various projects".

Iran has already started issuing bonds to raise funds for these projects, and last month a top official with the state-owned National Iranian Oil Company said it will issue five billion euros worth of bonds in the next Iranian year starting March 21, 2011.

He said three billion euros of the money raised from the issue will be used to develop South Pars.