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Friday, September 12, 2008

Oman to fund Iran gasfield development

MUSCAT: Oman and Iran plan to complete the development of the Kish gasfield in the Gulf by 2012 with the GCC state footing the bill of up to $12 billion, an Omani energy ministry official said yesterday.

"Oman is going to wholly fund the Kish gasfield and we expect to sign an agreement at the end of 2008 so the plant can start producing gas for Oman by 2012," an oil and gas ministry project official said.

"The project will involve a 200km pipeline, mostly underwater, to Musandam and Sohar.

"Phase one of this project will transport gas to Oman at a rate of one billion cubic feet per day and then rising to 3bn cubic feet."

Iran and Oman signed a deal in April to jointly develop Iran's Kish gasfield at an estimated cost of between $7bn and $12bn, but did not give a timeline for the project at the time.

Iran's oil minister travelled to Muscat earlier this month to discuss the plans to export Iranian gas to Oman, from where it could be exported using an Omani liquefied natural gas (LNG) plant.

Iran has the world's second biggest gas reserves but has been slow to develop gas exports and has no LNG facilities, which supercool gas so it can be exported by ship.

Facing US sanctions and pressure, it has increasingly turned towards Asia and elsewhere to develop its oil and gas sector. The Islamic Republic's gas reserves were put at 27.80 trillion cubic metres at the end last year, compared to Oman's much more modest 690 billion cubic metres.

The gas heading to the Omani LNG facility will be used by the National Iranian Oil Company.
Published on 11 September in:

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