Iran Denies Crescent Petroleum's Deal For Gas Transportation

Published: 19-Apr-2009

By: Staff Writer Staff Writer Staff Writer

Iran's Oil Minister, Gholam-Hossein Nozari has rejected that his country entered into a deal with Crescent Petroleum to transport natural gas to the UAE, according to sources. Crescent Petroleum agreed to raise the price it pays for gas imports from Iran after quite a few rounds of negotiation with Iranian officials.

I have heard his [Jafar's] remarks, but there will be no gas sales to this firm unless the gas price is changed and our national interests are fully met, Nozari said.

National Iranian Oil Company (NIOC) and Crescent Petroleum have reached a deal in 2001 to transport natural gas through a 90-mile pipeline from the Salman field to Lavan Island in the Persian Gulf.

However, Iran raised its early proposition on price, citing a sharp rise in international gas prices since the time the contract was agreed upon between both the parties.

Majid Hamid Jafar, executive director of Crescent Petroleum said the company had proposed a 'much higher' price than the earlier offer, adding that the firm was waiting for a reply from the Iranian oil ministry.

NIOC head Seyfollah Jashnsaz, however, said on Wednesday that no talks had been held with Crescent on a price rise.

Nozari also said, Crescent has not made any new proposals and there has not been any agreement with it.

The actual agreement predicted a 25-year contract starting in 2005. Iran's state auditors said the nation could lose as much as $21 billion over the 25-year agreement if gas prices do not meet market conditions.

Depending on the agreement, Iran was to export 195 million cubic feet of gas to the Persian Gulf state in 2005-2006 followed by exports of 230 million cubic feet, 300 million cubic feet and 350 million cubic feet in the subsequent three years.

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