National Iranian Gas Company signed a deal with Oman to conduct gas export studies on Monday, state media reported.
The contract was signed hours ahead of a meeting between Iranian and Omani oil ministers, Bijan Namdar Zanganeh and Mohammed al-Rumhi respectively, to explore expansion of oil and gas cooperation, ISNA reported.
Chief executive of the National Iranian Gas Export Company, Alireza Kameli, signed the deal with Director General of Planning and Projects Evaluation of Oman's Oil and Gas Ministry, Saif bin Hamad al-Salmani, IRNA reported.
Pars Consulting Engineers Group and the Iranian Offshore Engineering and Construction Company signed as contractors to carry out the studies. PCE has six months to carry out studies on the 200-kilometer pipeline from Rudan to Mount Mubarak in Oman, while IOECC was given five months to finish research on the seabed potion of the pipeline, also 200 kilometers long, that connects Mount Mubarak to the Omani port of Sohar.
Under this agreement which is estimated to be worth $60 billion, Iran will export 28 million cubic meters of gas per day to Oman for 15 years.
Energy Cooperation
Iran and Oman have also recently discussed expanding cooperation in building dams and water supply infrastructure, an Energy Ministry executive said.
"Omani officials expressed their willingness for increasing cooperation with Iran," Bahram Nezam-ol-Molki was quoted as saying by IRNA.
"Iran and Oman have good diplomatic relations but economic cooperation is scant. We want to change that. Bilateral trade is less than $1 billion per annum."
Iranian companies have approved expansion of activities in Oman's water projects. They are experienced in establishing dams and irrigation networks, as the country has had to deal with water shortages for years.
Nezam-ol-Molki, who met with his Omani counterpart, said Iranian expertise in the field was demonstrated to the Omani delegation.
"As Oman also needs hydroelectric generation technology, Iranian companies will help Oman in their construction projects," he said.
