The head of National Iranian Gas Exports Company said US President Donald Trump's hawkish remarks on not renewing sanctions' relief against the country are unlikely to shackle Iran-Oman gas cooperation.
Mehran Amir-Moeini also told Shana that Oman is keen to cooperate with Iran in the gas project that will not be affected by the US president's decisions over Iran's nuclear deal.
Iran signed an agreement with Oman in 2013 to deliver 28 million cubic meters of gas per day to the Persian Gulf littoral state for 15 years. The two nations hope the gas flow will begin by 2020.
However, concerns have been raised over Trump's recent remarks about reimposing sanctions against Iran, which could affect the country's oil and gas trade.
Trump has criticized the deal and has said that unless European allies fix the "flaws” in the Iran nuclear deal by May 12, he will refuse to extend US sanctions relief on oil-producing Iran.
Iran and six major powers signed the nuclear agreement, known as the Joint Comprehensive Plan of Action, in July 2015 and started implementing it in January 2016. Under JCPOA, Iran undertook to curb its nuclear program in exchange for the removal of nuclear-related sanctions.
Amir-Moeini did not reject all the impacts of such moves, saying that political stability is key to foreign investors' interest but "we will not sit around and do nothing and definitely take necessary measures".
Sanctions cut Iran's oil output to around 2.5 million barrels a day, but Iran has almost fully reached its pre-sanctions production capacity of around 4 million bpd within five months of the sanctions removal.
New Developments
Oman is planning to invite bids for the construction of a subsea natural gas pipeline between its port city of Sohar and Iran in May.
According to Oman's Oil Ministry, eight consortiums from across the globe have expressed interest in implementing the project, IRNA reported. Amin-Moeini said foreign investments and cooperation should not be regarded as crossing out domestic potentials.
He noted that state funds are limited and the oil industry requires huge investments and new technologies.
"Iran will carry out the onshore section of the gas pipeline and the country is ready to begin work on the project," he said.
In February last year, Tehran and Muscat signed a preliminary agreement on the pipeline project that is estimated to cost $1.2 billion.
Previous reports by IRNA quoted Iran's Oil Minister Bijan Namdar Zanganeh that the project will supply Iranian gas to the littoral state by the end of June.
“The deal will be finalized in two stages: The first of which is planned to be concluded by the end of May and the second is going to be signed by the end of June,” he said.
International oil and gas firms, including Total, Royal Dutch Shell, South Korea's KOGAS, Mitsui & Co. of Japan and German firms Uniper SE and E.ON SE, could be involved in the gas venture, according to an official at the National Iranian Oil Company.
Russia, Iran's political ally and an increasingly close economic partner, could also help with the development plan.
NIOC chief, Ali Kardor, has expressed Iran's interest in Gazprom’s participation in the pipeline project.
Iran produces more than 800 million cubic meters of gas per day but exports only around 50 mcm/d to Turkey, Iraq and Russia. The country holds the world's largest gas reserves after Russia.
