Energy
0

Zanganeh Signs Energy Agreements in Iraq

Zanganeh Signs Energy Agreements in IraqZanganeh Signs Energy Agreements in Iraq

Oil Minister Bijan Namdar Zanganeh on Monday signed two preliminary agreements in Iraq on developing joint fields and expanding gas trade with the Arab neighbor. 

The first agreement entails the joint development of Parviz Oilfield, which adjoins Iraq's Naft Khaneh field and Khorramshahr Oilfield, known as Sinbad along the Iraqi border, Shana reported.

Zanganeh was accompanied by Amirhossein Zamaninia, his deputy for international affairs.

The two sides last month reportedly discussed the outlines of a scheme to jointly develop Parviz and Naft Khaneh fields.  No details were available on the technical or financial terms of the collaboration.

The second agreement relates to oil and gas equipment manufacturing, renovation of Iraqi refineries, gas export and organizing training courses for the Iraqis.

Iran and Iraq have developed a pipeline for the export of Iranian gas to power plants in Baghdad and Iraq's second-largest city Basra. 

Export will reportedly begin at 7 million cubic meters per day and soar to a high of 35 mcm/d during the hot season, the time of the year marked by chronic outages in Iraq.

Iran's ambassador to Iraq, Hassan Danaeifar, told ISNA on Monday that the visit was made on the invitation of Iraqi Oil Minister Jabar al-Luaibi.

The two ministers also discussed the global oil market and an OPEC deal that has cut overall oil production to lift sagging prices. The visit to Baghdad comes in the wake of reports that the two sides have come to an understanding on resuming electricity supply after Tehran halted exports in the beginning of the year. 

Mehr News Agency reported last week that Iraq has paid $350 million as part of its $1.3 billion debt for power imports from Iran in 2016.

Houshang Falahatian, a deputy energy minister, said on Sunday that the electricity export deal with Iraq has been renewed for 2017.

Add new comment

Read our comment policy before posting your viewpoints

Financialtribune.com