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Iran, Turkey sign energy cooperation deal, agree to develop Iran's gas fields |
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Written by AP
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Sunday, 15 July 2007 07:03 |
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Iran and Turkey have signed a deal on energy cooperation and agreed to develop part of the giant South Pars gas field in the Persian Gulf on buyback basis, state-run radio reported Saturday.
"It was agreed that Turkey would develop three phases - 22, 23 and 24 - of South Pars and offer the gas produced to Iran on buyback (basis)," state-run radio quoted Iranian Oil Minister Kazem Vaziri Hamaneh as saying.
Hamaneh said the two sides would sign an official contract on development for the gas field within the next four to six months, after the completion of feasibility studies by Turkey.
The radio also said Iran and Turkey signed a memorandum of understanding on energy cooperation but didn't elaborate.
Iran has a 28-phase plan to develop by 2012 its part of the gas field, shared with Qatar in the Persian Gulf waters, Dow Jones Newswires reported.
Tehran has increasingly resorted to emerging nations to develop its oil and gas fields because of U.S. sanctions. The sanctions aim at barring Iran from capital and technology transfers by major oil firms in industrialized nations.
The preliminary understanding on the development of the South Pars gas field with Turkey was part of a bigger agreement reached Friday that included the transit of Iranian natural gas to Europe through Turkey, as well as the transit of gas from Turkmenistan to Turkey via Iran.
"In order to export Iran's gas to Europe a pipeline should be laid between the two countries," the official IRNA news agency quoted Vaziri, the oil minister, as saying.
Vaziri said Iran and Turkey would enter detailed discussions on the project next month when his Turkish counterpart, Hilmi Guller, pays an official visit.
Iran, Turkey and the Austrian energy company OMV AG have been in discussions since January to form a joint-venture that would supply gas to the proposed Nabucco pipeline that should run from Iran and Central Asia through Turkey to Europe.
The resulting joint venture could see Iran providing more than half the 31 billion cubic meters a year of gas that the pipeline would deliver to Europe. |