Iran, Oman Gas Deal Expected Soon

Iran and Oman are expected to soon sign a final gas deal.

A senior Omani oil ministry official said Wednesday Iran will soon sign an agreement with Oman over the exports of natural gas, Press TV reported.

“The two countries negotiated signing the agreement for more than 3 to 4 years and we will soon witness signing gas deals between Iran and Oman,” said Ali Abdullah Al-Riyami, the director general of oil and gas marketing in the Omani oil ministry. “I cannot say when the Iran-Oman gas deal will be signed, but conditions between the two countries are ripe for this contract.”

In September, Iran and Oman signed contracts related to the pipeline.

The 400-kilometer pipeline, stretching from Iran to Oman is defined in two onshore and offshore sections. Land part of the gas pipeline extends for 200 kilometers from Rudan to Mobarak Mount in southern Hormozgan Province. The seabed section between Iran and Sohar Port in Oman will stretch for another 200 kilometers.

The study on the maritime section was handed over to Iranian Offshore Engineering and Construction Company (IOEC), and its contract was signed by Managing Director of the National Iranian Gas Exports Company (NIGEC) and Director General for Planning and Projects Evaluations of the Omani Ministry of Oil and Gas Saif bin Hamad al-Salmani.

The study on the land section was assigned to Pars Consulting Engineers (PCE). 

Iran and Oman in 2013 signed an initial deal under which Tehran will export 28 mcm/d of gas to its neighbour through the pipeline for 15 years.

Tehran wants to export some of the gas it will transport to Oman as LNG to markets in Asia. The two parties have held discussions regarding the same.