Iran is looking into reviving a 2004 gas project with Oman, according to the country’s oil minister Javad Owji. The initiative is estimated to bring in around US$1 billion in gas revenue to Tehran.
As reported by the state-run Islamic Republic News Agency, Owji brought back to the table the long-stalled project when he met with Oman’s top foreign and energy officials. The agreement was reached ahead of the planned state visit by Iranian President Ebrahim Raisi to Muscat.
Iran currently stands as the home of the second-largest proven natural gas reserve in the world.
The project will entail developing a shared gas field on the Hengam field in the Persian Gulf. The area is estimated to hold around 700 million barrels of crude oil and two trillion cubic feet of natural gas.
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The development of the gas layer has long been stalled since the two countries signed a US$60 billion, 25-year deal in 2013 for Iran to supply gas exports to Oman through an undersea pipeline. The project originally planned to deliver 30 million cubic meters of gas exports to Oman daily. But changes in routes to avoid waters controlled by the United Arab Emirates and price disagreements led to the project being delayed.
Pressure on Oman to source other gas suppliers amid the brouhaha with the Iran nuclear deal also affected the project’s timeline.
But the accord still hangs in the balance as Washington still includes Iran’s Islamic Revolutionary Guard Corps in its list of terrorist organizations.
Information for this briefing was found via Bloomberg and Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
