The deal concerns construction of a subsea gas
pipeline to transfer Iranian natural gas to the Sultanate of Oman, IRNA
Speaking in Muscat on Wednesday evening, Mr.
Zangeneh said the agreement for construction of the pipeline will be carried
out in two parts, the first part of which will be completed by the end of May,
and the other part will be completed by the end of June.
Referring to a meeting with Omani Minister of Oil
and Gas Mohammad Al-Rumhi, Zangeneh said: "Things went well… today's
agenda was summed up and signed; I hope that this agreement will be finalized
at the scheduled time."
In response to a question about the reason for
the delay in closing the deal, the Iranian Minister of Petroleum said:
"There are many problems; we have to conclude a contract with a contractor
that is endorsed both by Iran and Oman. In addition, there are several legal
issues related to this subject which require more care and attention."
Asked about some claims that, if the deal prolonged two much, Oman may
prefer to tap its own gas reserves rather than buying natural gas from Iran, Zangeneh
said, "Negotiations with the Omani party and other visits by [Omani] buyers
dispute such claims."
The Iranian official traveled to Muscat on
Wednesday evening after attending the 16th ministerial meeting of the International
Energy Forum in New Delhi to follow up on the construction of the Iranian gas
pipeline to Oman.
In 2013, Iran and Oman signed a Memorandum of
Understanding on Natural Gas Exports by which a gas pipeline would directly export
Iran's natural gas to Oman through the Persian Gulf.
Based on the MOU, Iran will export gas to Oman for
production of annually 1.5 million tons of LNG.
The gas transfer capacity of the pipeline will be
1.5 billion cubic feet per day. A part of the capacity will be used for LNG
production and the remaining gas will be used for futures markets in Persian