Iran, Crescent gas talks to continue

Wed, 10 Sep 2008 07:07:59 GMT
http://www.presstv.com/detail.aspx?id=6898...ionid=351020103


A deal to export Iranian natural gas to the UAE is still under negotiation between Crescent Petroleum and Iran's Interior Minister Ali Kordan.

The Fars News Agency reported that the deal will not be finalized in Wednesday's meeting in Tehran, and further talks will be necessary.

Kordan is heading the Iranian delegation in this round of talks and the Managing Director of the National Iranian Oil Company, Seifollah Jashnsaz, is a participating member.

The laborious negotiation process between Iran and Crescent, a shareholder in the United Arab Emirates energy firm Dana Gas, began after an initial agreement was signed in 2001.

The original agreement envisaged a contract of 25 years starting in 2005. Based on the signed
agreement, Iran was to export 195 million cubic feet of gas to the Persian Gulf state in 2005-2006 followed by the exports of 230 million cubic feet, 300 million cubic feet and 350 million cubic feet in the following three years.

Iran's offshore Salman field in the Persian Gulf was slated to supply gas to the UAE.

Disputes regarding price have stalled talks. Iran increased its initially proposed price, citing a sharp rise in international gas prices since the time the contract was agreed upon between the two countries.

Based on the report, the Chair of Energy Committee of Majlis (Iranian Parliament), Hamid Reza Katouzian, said the government needs to convince Majlis of the rationality of the contract before signing the final deal with Crescent Petroleum.