Agreement to transfer gas to Oman to be finalized by June

After a meeting with Omani Minister of Oil Mohammed bin Hamad Al Rumhi in Muscat, Zangeneh said the agreement on laying a gas pipeline consists of two parts with the first part being carried out by the end of May and the second part by the end of June.

On his meeting with the Omani oil minister, Zangeneh said, 'Things went well and the minute of protocol concerning the agreement reached between the two sides was signed. We hope that the agreement will be finalized according to the schedule.'

Asked about reasons for frequent delays in reaching such an agreement, the Iranian petroleum minister said, 'There are many problems. We have to sign a deal with a contractor acceptable to both countries. Moreover, this entails numerous legal issues which require more scrutiny and studies.'

On some news speculating that in case of prolongation of the project Oman would prefer to use its own gas reserves than buying it from Iran, Zangeneh said negotiations with the Omani side and demands made by other customers show the contrary.

Zangeneh arrived in Muscat Wednesday afternoon from New Delhi where he participated in the 16th meeting of the International Energy Forum.

Tehran and Muscat signed a memorandum of understanding in 2013 on export of Iranian natural gas to the Sultanate of Oman via a pipeline running through the Persian Gulf seabed.

Tehran and Muscat agreed on Iranian export of one billion cubic feet of gas to Oman per day. They also agreed that a part of gas imported from Iran be turned into LNG in Oman for re-export to target markets.

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