Iran, Oman agree to renew gas supply deal

Iran and Oman have agreed to renew a gas supply deal that dates back to two decades ago.

The Saturday report by the Islamic Republic News Agency (IRNA) said that Iranian Oil Minister Javad Owji and his Omani counterpart Mohammed Al Rumhi had agreed in a meeting to start the construction of a gas pipeline that will allow exports of Iranian natural gas to the Arab Sultanate.

The report did not elaborate on further details. Iranian Oil Ministry’s news service Shana said that Owji and Rumhi had discussed energy cooperation as well as joint projects between Iran and Oman during the meeting held earlier in the day in the Omani capital Muscat.

The idea for a subsea gas pipeline between Iran and Oman was first raised in 2005 when Iran committed as part of contract to start supplying 30 million cubic meters (mcm) per day of natural gas to Oman by 2008 and then increase the exports to 70 mcm per day by 2012.

Another agreement in 2013 stipulated that Iran should provide Oman with 28 mcm per day of gas over 15 years.

IRNA described the revival of the gas supply contract with Oman as a major diplomatic victory for President Seyyed Ebrahim Raeisi’s administration since it took office in August last year.

Raeisi is due to Oman on Monday for an official visit to the Sultanate. The trip comes a week after a senior Iranian trade delegation traveled to Oman to discuss increased economic ties between the two countries.

The IRNA report said Owji and Rumhi had also reached agreements on a joint development project for Hengam, a major oil and gas field that is located within the maritime boundaries of Iran and Oman in the Strait of Hormuz.

SS