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Iran, Malaysia sign oil $16 billion deal to develop two Iranian gas fields

Iran, Malaysia sign oil $16 billion deal to develop two Iranian gas fields

Iran and Malaysia signed a US$16 billion (euro11 billion) agreement to develop two Iranian gas fields, state-run television reported Wednesday, calling it the "biggest" energy contract in Iran.
Iran's Pars Oil and Gas Company (POGC) and Malaysia's SKS Ventures signed the multibillion dollar contract to develop Golshan and Ferdows gas fields in southern Iran.
The contract was formally signed by Ali Vakili, director of POGC, and Mokhtar Al-Bokhari, director of SKS Ventures, in the capital Tehran on Wednesday, the television reported.
"This contract worth US$16 billion. Some US$6 billion is for development of offshore and $10 billion for development of onshore gas fields for a period of 25 years," the television reported.
Iran's Oil Minister, Gholam Hossein Nozari, praised the deal as a vindication of his country's efforts to counter pressures to isolate Iran.
"This is the biggest investment contract in the country's energy sector," the official IRNA news agency quoted Nozari as saying.
The multibillion dollar contract was signed weeks after China's biggest oil refiner, Sinopec, and Iran signed a $2 billion agreement on developing the Yadavaran oil field despite U.S. calls for sanctions over Iran's nuclear program.
China rejected US complaints about the deal, saying the agreement was no other government's business. The deal, coinciding with U.S.-led efforts to pressure Iran with threats of tighter economic sanctions to rein in Tehran's nuclear program, drew a sharp rebuke from Washington.
Nozari said economic boom in southeastern Asia has sharply increased its need for imported oil and gas and that the contract with Malaysia has to be seen in that light.
The reserves at the Golshan gas field, 65 kilometers from the southern port city of Bushehr, is estimated more than 50 trillion cubic feet (1.5 trillion cubic meters) of gas and it is expected to produce 2.5 billion cubic feet (70 million cubic meters) of natural gas per day.
The Ferdows' gas reserves is estimated at around 10 trillion cubic feet (285 billion cubic meters) and it would produce more than 880 million cubic feet (25 million cubic meters) of gas on a daily basis.


Updated : 2021-04-18 02:40 GMT+08:00