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Oman ties up Iran gas pact



By Upstream staff 

Oman signed an oil and gas co-operation agreement with Iran, a move which could see the sultanate importing 1 billion cubic metres per day of Iranian gas.

In a report published on its website, Oman's official news agency ONA said the memorandum of understanding between the two countries is to develop the joint Bukha-Hengam field, together with other fields in Iranian waters, and pump the gas to Oman.

The gas would be cooled for export at Oman's Qalhat liquefied natural gas plant and exports marketed by a joint Omani-Iranian company, ONA said.

The imported volume would depend on the amount of gas found in new fields in Iran's waters, ONA quoted Oman's Commerce & Industry Minister Makboul bin Ali bin Sultan as saying.

The agreement also calls for setting up joint petrochemical projects in both countries and investment in other countries and with international companies in the gas sector. Oil Minister Kazem Vaziri-Hamaneh signed the deal for Iran.

Oman has LNG capacity of just under 10 million tonnes per year. Iran and Oman have been discussing for years the joint field, called Hengam in Iran and West Bukha in Oman. As long ago as 1995, an Iranian news agency reported the countries had agreed to develop the field.

It holds around 2 trillion cubic feet of gas and is seven miles off the coast of Oman in the strategic Strait of Hormuz.


Wednesday, 16 May, 2007, 12:56 GMT  | last updated: Wednesday, 16 May, 2007, 12:56 GMT

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