The deceased was employed at the Sadaf pipe yard outside Bushehr, which has been hired as a contractor for the South Pars project.
After receiving an electrical shock, the 22-year-old was taken to hospital at once but died of his injuries.
"This is the second fatal accident in a short time at Sadaf, and we have ordered an immediate halt to work at the yard until further notice," says Peter Mellbye, executive vice president for Statoil's International Exploration & Production business area.
Safety has been a challenge in the South Pars project. Since becoming involved, Statoil has implemented a number of measures to tackle this aspect.
These steps include training of personnel and improvements to working procedures.
Statoil will be immediately dispatching its own inquiry team to Iran.
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