Oman, Iran sign oil, gas cooperation agreement

Oman and Iran have signed a memorandum of understanding to jointly develop oil and gas fields, for Iran to export gas to Oman, and to establish joint petrochemical projects.

May 16, 2007

Uchenna Izundu
International Editor

LONDON, May 16 -- Oman and Iran have signed a memorandum of understanding to jointly develop oil and gas fields, for Iran to export gas to Oman, and to establish joint petrochemical projects.

Iran and Oman also will establish a joint company to carry out oil projects, according to the MOU. The nations hope to implement their agreement within the next 4 months.

Oman's Commerce and Industry Minister Maqbool bin Ali bin Sultan and visiting Iranian Petroleum Minister Vaziri Hamaneh signed the agreement May 15 in Oman.

Iran is expected to export 1 billion cu m/day of gas to Oman either by pipeline or as LNG, according to local Omani and Iranian reports.

Mahmoud Zirakchian Zadeh, managing director of Iranian Offshore Oil Co., was quoted as saying, "Specifying the price of export gas to Oman needs to be further scrutinized." He said the two countries have also agreed to develop Hengam gas field, which is shared between the two Persian Gulf states.

Contact Uchenna Izundu at [email protected].