Mahmud Zirakchianzadeh said a joint working committee will be formed within a month to put the agreement into practice, adding the committee will study the joint development of the field.

Since Hormuz gas field is the nearest one to Oman, it is the most proper field for exporting gas to that country.

He added that Iran"s Salman gas field will export 500 million cubic feet of gas to the United Arab Emirates (UAE) per day.

The IOOC output will be increased to over 800 thousand barrels, he announced.

Iran and Oman inked a five-article gas contract in Muscat on May 15, 2007.

The agreement was signed by Iranian Minister of Petroleum Seyed Kazem Vaziri-Hamaneh and Oman’s Minister of Commerce and Industry Maqbool bin Ali Sultan.

According to the first article, Iran would export one billion cubic feet of gas to Oman – 23 million cubic meters per day, said Zirakchianzadeh, adding some part of the gas, due to Oman’s need, would be exported to that country in the form of liquefied natural gas (LNG) and Iran would get involve in its sales procedures.

Elaborating on the price of export-bound gas, the IOOC head said the issue should be studied and Iran would export gas to Oman at the latest price.

The development of Hengam joint field and Oman’s investment in Iranian oil and gas fields were among other topics the two sides reached an agreement, he added.

By investing in Iran’s reserves, Oman would meet some part of its gas need, said the official, adding Kish gas field was picked as the first area for Oman’s investment.

“Iran and Oman also agreed to develop and produce of a third country’s gas and export the commodity to Oman via Iran,” Zirakchianzadeh said.

The other article urged the two parties to establish a joint company to make investments in the project of exports of Iran’s gas to Oman, to implement the development plans of Iranian oil and gas fields, to carry out and other joint activities, added the IOOC chief.

“The fifth article obliges the two states to transfer the technology to each other.”

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