Oman to export Iranian gas?
Regional papers in the Gulf announced today that Iran and Oman are planning to sign an agreement under which Oman will develop Iran's Kish gas field to the tune of $12 billion by 2012.
An official from the Oil and Gas ministry, who asked not to be named, apparently told Reuters that the agreement would be signed before the end of 2008.
A 200km underwater pipeline to Musandam and Sohar is projected.
The Tehran Times reported last year that Iran’s Minister of Petroleum Seyyed Kazem Vaziri-Hamaneh and Oman’s Minister of Commerce and Industry Maqbool Bin Ali Bin Sultan had inked a contract on exports of one billion cubic feet of gas to Oman daily.
Both countries agreed to jointly invest and develop the Kish gas field in April this year, when costs were quoted at $7billion rising to £12 billion. Eventually, Iran will export three billion cubic feet of gas daily to Oman.
According to IRNA, the chairman of Oman's Chamber of Commerce, Abdullah al-Khonji, suggested to a visiting party of Iranian businessmen in May this year, that in return for development of the Kish gas field, Iran could provide 'diary (sic) products, protein food stuff, agricultural goods, metals and minerals, proportionate with demands made by Omani merchants.'
The Fars News Agency, and other media sources in Iran, stated in August that Iran's gas would be transported via pipeline to Oman's LNG plant at Qalhat, for onward export by the National Iranian Oil Company.
'“Potentially you could have Iranian gas actually being piped to Oman and then liquefied and sold on international markets,” said Stuart Lewis, Middle East director at energy consultancy IHS.' BIME
'Iran's efforts to build its own LNG facilities have faced delays, in part because US sanctions on Tehran deter investors and block access to some technology.' TradeArabia
Fars News Agency also admitted that 'The talks with Omani officials have had ups and downs over recent months.'
And of course, no sooner had French major, TOTAL, withdrawn its planned multi-billion dollar oil and gas developments in Iran at least partly because of the difficulty of doing business in the face of US sanctions, then Russia's Gazprom stepped in, offering 'construction of refineries; transfer of oil from the Caspian Sea to the Sea of Oman; development of Iran's North Azadegan oil field; exchange of technology and experience; and the possible participation of Gazprom in the planned pipeline between Iran, India and Pakistan.' RedOrbit
Royal Dutch Shell and Spain's Repsol pulled out of their investment in developing Iran's South Pars field in May this year. Sanctions, rising costs and insistent Iranian demands to develop the block quickly have all been cited as reasons. Financial Times
A week ago, a Russian news agency confirmed that 'Russia has agreed to buy Oman's 7% stake in the Caspian Pipeline Consortium.'
Surprisingly or otherwise, news of these very substantial transactions does not seem to have reached the Omani press.
Addendum 12th September 2008: 'Iran and the United Arab Emirates postponed negotiations on a deal to export natural gas from the Iranian Salman field, citing disputes of transfer fees. [ ] state auditors said Iran could lose as much as $21 billion over [an earlier-agreed] 25-year agreement if gas prices do not meet market conditions.' UPI
An official from the Oil and Gas ministry, who asked not to be named, apparently told Reuters that the agreement would be signed before the end of 2008.
A 200km underwater pipeline to Musandam and Sohar is projected.
The Tehran Times reported last year that Iran’s Minister of Petroleum Seyyed Kazem Vaziri-Hamaneh and Oman’s Minister of Commerce and Industry Maqbool Bin Ali Bin Sultan had inked a contract on exports of one billion cubic feet of gas to Oman daily.
Both countries agreed to jointly invest and develop the Kish gas field in April this year, when costs were quoted at $7billion rising to £12 billion. Eventually, Iran will export three billion cubic feet of gas daily to Oman.
According to IRNA, the chairman of Oman's Chamber of Commerce, Abdullah al-Khonji, suggested to a visiting party of Iranian businessmen in May this year, that in return for development of the Kish gas field, Iran could provide 'diary (sic) products, protein food stuff, agricultural goods, metals and minerals, proportionate with demands made by Omani merchants.'
The Fars News Agency, and other media sources in Iran, stated in August that Iran's gas would be transported via pipeline to Oman's LNG plant at Qalhat, for onward export by the National Iranian Oil Company.
'“Potentially you could have Iranian gas actually being piped to Oman and then liquefied and sold on international markets,” said Stuart Lewis, Middle East director at energy consultancy IHS.' BIME
'Iran's efforts to build its own LNG facilities have faced delays, in part because US sanctions on Tehran deter investors and block access to some technology.' TradeArabia
Fars News Agency also admitted that 'The talks with Omani officials have had ups and downs over recent months.'
And of course, no sooner had French major, TOTAL, withdrawn its planned multi-billion dollar oil and gas developments in Iran at least partly because of the difficulty of doing business in the face of US sanctions, then Russia's Gazprom stepped in, offering 'construction of refineries; transfer of oil from the Caspian Sea to the Sea of Oman; development of Iran's North Azadegan oil field; exchange of technology and experience; and the possible participation of Gazprom in the planned pipeline between Iran, India and Pakistan.' RedOrbit
Royal Dutch Shell and Spain's Repsol pulled out of their investment in developing Iran's South Pars field in May this year. Sanctions, rising costs and insistent Iranian demands to develop the block quickly have all been cited as reasons. Financial Times
A week ago, a Russian news agency confirmed that 'Russia has agreed to buy Oman's 7% stake in the Caspian Pipeline Consortium.'
Surprisingly or otherwise, news of these very substantial transactions does not seem to have reached the Omani press.
Addendum 12th September 2008: 'Iran and the United Arab Emirates postponed negotiations on a deal to export natural gas from the Iranian Salman field, citing disputes of transfer fees. [ ] state auditors said Iran could lose as much as $21 billion over [an earlier-agreed] 25-year agreement if gas prices do not meet market conditions.' UPI
