MUSCAT: Oman and Iran plan to complete the development of the Kish gas field in the Gulf by 2012 with the Gulf Arab state footing the bill of up to $12 billion, an Omani energy ministry official said on Wednesday.
“Oman is going to wholly fund the Kish gas field 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, who declined to be named, told Reuters.
“The project will involve a 200-km 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 3 billion cubic feet.”
Iran and Oman signed a deal in April to jointly develop Iran’s Kish gas field in the Gulf at an estimated cost of between $7 billion and $12 billion, but did not give a timeline for the project at the time. Iran’s oil minister traveled 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 plant.
Iran has the world’s second biggest gas reserves but has been slow to develop gas exports and has no LNG facilities.
Facing US sanctions and pressure, it has increasingly turned toward Asia and elsewhere to develop its oil and gas sector.
Iran’s gas reserves were put at 27.80 trillion cubic meters at the end of 2007, compared to Oman’s much more modest 690 billion cubic meters. Iran’s ISNA news agency said that the gas heading to the Omani LNG facility will be used by the National Iranian Oil Company, a state firm which oversees Iran’s hydrocarbons industry, in its international markets and sales.
Some of the Iranian gas would be used by Oman, it added.
