14 May 2007 - 12:30
  • News Code: 104614
Iran, Oman to Sign Gas Deals Tonight

TEHRAN – The managing director of Iranian Offshore Oil Company (IOOC) here Monday said Iran and Oman would ink two agreements on exports of gas to Oman and development of Hengam gas field tonight.

Mahmoud Zirakchianzadeh talking to PIN referred to his visit to Oman and said the two sides had already reached an agreement on the terms and conditions of contracts and the deals would signed in the presence of Iran’s Minister of Petroleum Seyed Kazem Vaziri-Hamaneh later in the day.

“According to the agreement, Iran will export one billion cubic feet of gas to Oman daily,” said the official, adding Oman’s investment in Iran’s oil and gas fields, development of Hengam joint field, and setup of Iran-Oman joint company were among the agreed issues.

Zirkchianzadeh said the details of agreements would be decided by a joint work group after the two parties inked the deals.

The IOOC head added the two countries had also exchanged views on Iran’s technical and engineering services, but they had yet to finalize their talks.

He had already announced that Iran would export gas to Oman if the sides reached an agreement on price.

Petroiran Development Company (PEDCO) will start preparing the Master Development Plan (MDP) of the Persian Gulf’s Hengam gas field on May 22.

According to the schedule, the studies on Hengam field will end before May 22 and the PEDCO will put the MDP top on agenda thereafter.

 

 

According to the report of Iran’s Oil Engineering and Development Company (OEDC) on Hengam, 32.76 million dollars and 20 billion rials (2.1 million dollars) have been so far spent for the studies on the gas field, equaling to 92.52 percent of the predicted cost.

PEDCO also reported that the project had totally made a 98.57 percent progress and its geological model had been prepared, awaiting the finalization process.

The offshore Hengam gas field, which is shared with OmanQeshmIsland. With 150 million barrels of gas condensates, Hengam is of great capacity. , is located 20 kilometers off

IranOman and have been discussing the joint development of the field since last summer.

The project’s drilling operations were completed last November, which included the drilling of six wells.

PEDCO is a subsidiary of NIOC which is active in the upstream part of oil and gas projects in the Persian Gulf.

News Code 104614

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