Iran and Oman have agreed to coordinate their development projects for a shared oilfield in the Persian Gulf, says Iran’s Oil Minister Javad Owji who insists that the effort will protect the reservoir from potential damage while allowing the two countries to maximize their oil and gas output from the field.
Owji told Iranian Oil Ministry’s news service Shana on Monday that Iran and Oman had agreed to set up a joint technical committee to oversee the development of the remaining phases of Hengam oil and gas field in future.
Iran launched development works at Hengam, a reservoir located within the maritime borders of Iran and Oman in the Strait of Hormuz on the mouth of the Persian Gulf, in 2012. The move came after Oman failed to commit to the terms of an agreement signed in 2005.
Owji said that the coordinated development work in Hengam would lead to less damage to the shared reservoir while it would increase the oil and gas output from the field for both Iran and Oman.
He said that the two countries had also reached agreements on the use of Iranian technology and expertise in the Omani oil and gas industry.
“It was agreed that Oman uses the potentials of Iranian companies in the upstream and downstream of its oil and gas sectors and in refineries, petrochemical plants and gas installations,” said the minister.
Owji met his Omani counterpart Mohammed Al Rumhi in Muscat on Saturday two days before an official trip by Iranian President Ebrahim Raeisi to the Arab Sultanate.
A main objective of his talks with Omani officials was to revive a stalled gas supply deal between the two countries that dates back to two decades ago. Iran’s official IRNA news agency said that the two countries have agreed to revive the deal which would allow Iran to supply significant quantities of natural gas to Oman.