Iran, Oman discuss gas transfer deal

Iranian and Omani oil ministers have started a new round of negotiations on Iran’s gas export, the construction of petrochemical units and the bilateral development of oil and gas fields.

The new round of negotiations, which started on Tuesday in Tehran, will focus on the development of the Kish and Hengam gas fields in the Persian Gulf, the joint construction of petrochemical units and the export and exchange of Iran’s gas, the Mehr news agency reported.

Managing Director of the National Iranian Gas Company Seyed Reza Kasaeizadeh said earlier in August that Omanis need to purchase 2 billion cubic feet of gas from Iran for the country’s consumption.

Kasaeizadeh said the Kish gas field and the different phases of the South Pars gas field are being considered for gas exports to Oman.

Iran and Oman signed a deal in April to jointly develop Iran’s Kish gas field in the Persian Gulf at an estimated cost of between $7billion and $12billion, but did not give a timeline for the project at the time.

The two sides plan to complete the development of the Kish gas field by 2012.

The first phase of the project will transport gas to Oman at a rate of one billion cubic feet per day, which will then rise to 3 billion cubic feet.

During the talks in Tehran on Tuesday, the two neighbors are also to negotiate the details of the project including the extent of Oman’s investment in the development of the Kish gas field.