...

Iran delivers gas from controversial field to Asaluyeh

Oil&Gas Materials 5 May 2016 16:50 (UTC +04:00)

Baku, Azerbaijan, May 5

By Khalid Kazimov - Trend:

Iran has started delivering gas produced in controversial Salman field to plants in Asaluyeh city, an Iranian official said.

Managing Director of the National Iranian Oil Company (NIOC) Rokneddin Javadi said that the country has constructed a 300-km long pipeline to supply gas from Salman field to plants in Asaluyeh, Fars news agency reported.

Salman field's gas was supplied to Asaluyeh over the past week, Javadi said.

The official added that according to the initial plans the gas produced in Salman field was supposed to be delivered to the UAE but Iran later changed plans due to undisclosed problems.

NIOC and UAE's Crescent Petroleum signed the 25-year contract in 2001. Based on the contract, Iran was supposed to export unrefined natural gas from Salman gas field to the United Arab Emirates. However deliveries were delayed as oil prices rose and some officials and politicians in Iran called for a revision to the gas pricing formula.

Crescent Petroleum started arbitration proceedings in July 2009; a three-person arbitration tribunal was formed under the terms of the contract.

Based on the contract, Iran was supposed to export 195 million cubic feet per day of gas to the UAE in the first phase. The figure could be raised to 700 million cubic feet per day in the next phases.

Salman gas field is shared by Iran and the UAE. Some 70 percent of the offshore gas field is located in Iranian waters and the remaining 30 percent in the Gulf littoral Arab state.

Latest

Latest