According to PIN, they discussed different political, security and economic cooperation.
These two countries are of great potentials to cooperate in field of energy. Oman is in great need of natural gas to feed its LNG and other industries as Iran enjoys the world second biggest natural gas sources and it is near to Oman being the most reliable source for Oman.
Close distance to South Pars, the world biggest natural gas field, possibility of transmission of natural gas through pipe-line, delivering gas on marine borders as well as competitive prices are advantages of gas deal with Iran.
Exporting one billion cubic feet of natural gas through newly explored Kish gas field has been greed up on since the very beginning.
Kish gas field's Dahrom basins enjoy 48,000 bn cf of in-place gas reserves and 36,000 cf of recoverable and it also enjoys 514 million barrels of in-place gas condensates.
Oman expressed its willingness to have a share in developing Kish Natural Gas Field Development Plan. The required budget to develop this field is estimated $12 bn. Oman is willing to fund the project. Based on the signed agreement, the project is to be funded in form of buy-back. The first phase of the project is to be conducted on the land and the other two phases -2nd and 3rd – are to be offshore ones. The project is estimated to take 4 years to be completed and it would cost $12 bn. The project is to be completed in 2012.
Traveling to Iran Oman King was to accelerate signing the agreement. Exporting natural gas to Oman from Kish is to be conducted a 2,000 km pipe-line - a great part of that is to be laid in sea. One bn cf of gas is to be transmitted in the first phase. Completing the third phase, the produced gas is to reach 3 bn cf.
Iran Oil Offshore Company Managing Director declared: A part of Iran exported gas - to be used in Oman internal industries - would be sold and the rest - to be used in making LNG - would be transferred free of charge. Doing so, Iran will take a part in Oman LNG unit and can export LNG through this unit. Oman has difficulty in supplying this unit with its required natural gas.
Hamid Reza Kasaiedzaded – National Iranian Gas Company Managing Director explained: As Kish gas field enjoys sweet gas; it would be possible to develop it in time span shorter than other fields. Omani party is in need of natural gas to be able to supply its LNG unit.
Omani King Travel to Iran can be a great step toward finalizing the natural gas agreement as Mottaki emphasized.