Iran, Oman Agree To Revive Gas Supply Deal Stalled For Two Decades

Iran and Oman have agreed to revive a gas supply deal that dates back to two decades ago while Oil Minister Javad Owji is on a visit to Muscat.

According to a report by Iran’s official news agency IRNA on Saturday, Owji and his Omani counterpart Mohammed Al Rumhi agreed in a meeting to start laying the gas pipeline that will enable Iran to pump natural gas to the Arab Sultanate.

Describing the project as one of the biggest regional energy projects, the report said the initial agreement was signed in 2004 between their oil ministers but has been stalled since then.

According to the contract, Iran committed to start supplying 30 million cubic meters (mcm) per day of natural gas to Oman by 2008 and then increase the volume to 70 mcm per day by 2012.

The two countries also reached another agreement in 2013 according to which Iran was expected to pump 28 mcm a day of gas to Oman for 15 years through a pipeline laid on the bed of the Persian Gulf. The project, which had been estimated to earn Iran more than $1 billion annually, never became operational.

The report said that Owji and Rumhi also reached agreements on the joint development project for the shared Hengam oil and gas field, located within their maritime boundaries in the Strait of Hormuz.

President Ebrahim Raeisi is scheduled to travel to Oman on Monday for an official visit, while Muscat has traditionally played a mediating role between Tehran and Washington.