By Golnar Motevalli
(Bloomberg)—
Iranian Oil Minister Javad Owji met with Oman’s foreign and energy ministers in Muscat and discussed reviving a task to expand a shared fuel box that has stalled for nearly 20 years.
The Islamic Republic’s official news firm reported Saturday that Owji agreed to review a 2004 agreement to expand the fuel layer of the Hengam box in the Persian Gulf. IRNA cited a source.
The project, estimated at the time at around $1 billion in annual fuel sales to Iran, concerned the installation of a pipeline in the waterway bed to deliver 30 million cubic meters of Iranian fuel per day to Oman, IRNA said.
Owji’s stopover precedes President Ebrahim Raisi’s vacation in the Sultanate, which has sought to maintain ties with Iran following the Persian Gulf security crisis sparked by the Trump administration’s withdrawal from the 2018 nuclear deal.
Hengam’s box on the eastern side of the Gulf is estimated to involve about 700 million barrels of crude oil and two trillion cubic feet of herbarium gas, according to data from Iran’s National Oil Company, which manages iran’s percentage of the box.
Iran has the world’s largest fuel reserves, but its production capacity has been hampered by decades of underfunding and sanctions. Last month, Owji said the sector wants an investment of $80 billion.
Raisi’s visit, which begins Monday, comes as oblique negotiations between Tehran and Washington over how to reinstate the historic deal remain stalled following the U. S. designation of Iran’s Islamic Revolutionary Guard Corps as a terrorist organization.
©2022 Bloomberg L. P.
Bloomberg. com
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