Iran To Buy Gas Field From Azerbaijan

IRAN TO BUY GAS FIELD FROM AZERBAIJAN

Jomhuri-Ye Eslami
Aug 4 2008
Iran

Tehran, 2 Aug: During some discussions with Azerbaijan, the oil
minister [Gholamhoseyn Nowzari] said that we have announced our
readiness to buy a section of Shah Deniz field’s natural gas. He said:
A while ago, during a meeting that was held in the Oil and Gas Company
of the Republic of Azerbaijan, some discussions were made regarding the
second phase of Shah Deniz gas field. These discussions will continue.

He added: It seems that we may have a chance to compete with other
companies, because of Iran’s closeness to the Republic of Azerbaijan
and the lower costs of natural gas transfer.

According to his remarks, based on a scheduled plan, the development
of the second phase of Shah Deniz gas field will be operational after
four years, and by then it would be possible for us to buy gas.

Emphasizing that in currently the gas swap is made from the Republic
of Azerbaijan to the Republic of Naxcivan, the oil minister said:
One million cubic meters of natural gas, enters Iran from Azerbaijan
on a daily basis and based on Armenia’s need, 600-700 thousand cubic
meters are transferred to this republic.

Referring to the Oil Ministry’s charter, Nowzari reminded: The
works in the Oil Ministry have been finalized and presented to the
Cabinet. However the changes which have been made in the Oil Ministry
have not been finalized in the Cabinet yet. According to a report
by ISNA, referring to the fact that by using the gas of phase 7 of
the South Pars we would provide the gas for either phase 9 or 10 in
the refinery.

He said: At the moment, the drilling operation for wells conducted
by the National Drilling Company has been completed on the said
platform. Some final details related to the digging operations have
remained for completion. This is the job of digging contractors and
is not related to the National Drilling Company.

Referring to the development and completion of the operations of
Dorud Field [name as published], by Total [company] he merely said
that the Iranian Offshore Oil Company, instead of Total, is taking
over the installations of this field.