Persian Gulf neighbors resume talks on Kish

Omani and Iranian oil ministers have re-started talks concerning exports of gas from Iran, according to the country’s Petroenergy Information Network (PIN).

Offshore staff

TEHRAN -- Omani and Iranian oil ministers have re-started talks concerning exports of gas from Iran, according to the country’s Petroenergy Information Network (PIN).

Last year, the two countries signed a Memorandum of Understanding over the Kish gas field in the Persian Gulf, under which Iran would be responsible for development by 2012, while Oman would provide the investment, estimated at up to $12 billion.

PIN claimed Phase 1 of the project would produce 2 bcf/d of gas, around 65% of which would be used by Iran, with the remainder exported to Oman. A second-phase development would produce 1 bcf/d, again for domestic/export purposes.

PIN says Oman needs Iranian gas as a supply source for its LNG sector and other industries. Joint development of the Hengam gas field is reportedly also on the agenda for the latest discussions.

11/25/2009

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