Talks With Germans on SP Development

Talks With Germans  on SP DevelopmentTalks With Germans  on SP Development

Following Iran’s recent negotiations with Bulgaria regarding the Nabucco pipeline proposed by the Bulgarian Prime Minister Boyko Borisov, Tehran called on German companies to invest in South Pars development plans and transferring gas to Europe, Mehr news agency reported Monday.

Nabucco project is a proposed natural gas pipeline from the Turkish-Bulgarian border to Austria. It is planned to run from Erzurum in Turkey to Baumgarten and der March in Austria. The aim of the pipeline is to diversify natural gas suppliers and delivery routes for Europe, thus reducing European dependence on Russian energy.  The project is backed by several European Union member states and by the US, and was seen as a rival to the South Stream pipeline project.

In a meeting between Iranian and German manufactures and businesses, Iran expressed its desire to cooperate with German oil and gas equipment producers in developing the South Pars gas fields. No details were available on the names of the German companies and/or their representatives.

South Pars is the world’s largest gas field, shared between Iran and Qatar, covering an area of 3,700 square kilometers of Iran’s territorial waters in the Persian Gulf. It adjoins Qatar’s North Field, which measures 6,000 square kilometers.

Talking to more than 100 German investors at the weekend, the deputy industries, mines and trading minister, Mojtaba Khosrotaj raised the issue on behalf of Iran’s government. He underlined that prior to the sanctions Germany was Iran’s second largest trade partner with approximately $7 billion in annual deals. However, it is now at seventh place. Pointing to the participation of German firms in SP development in the past, he said, “Iran is still willing to collaborate with those companies as soon as the sanctions are removed.”

The US and its allies imposed tough sanctions on Iran to curb the country’s nuclear program which they claim is geared to military use. Iran insists its program is peaceful. After eight days of marathon talks on Tehran’s nuclear program in Lausanne, Switzerland, Iran and the P5+1 (Britain, China, France, Russia, the US plus Germany) reached a framework agreement on April 2 that calls for lifting all trade sanctions against Iran. The details of the agreement are to be finalized by a June 30 deadline.

Underlining the possibility of transferring SP gas to Europe, in particular Germany, the official reiterated that there is no limitation to investments in Iran’s oil and gas projects. Recently a German trade delegation held talks with officials in the oil ministry the national petrochemical company on investment prospects. There are also negotiations underway with the Netherlands and Italy to attract investments for petrochemical industries, the deputy minister said.