Iran's gas pipeline project has entered its first phase of implementation after a deal was signed with a company to carry out land survey to determine the pipeline route between Oman and Iran.
The company will then start executing the first phase of the project, said Saif bin Hamad Al Salmani, director-general of product and exploration at the Oman's Ministry of Oil and Gas.
The total cost of the project will be determined later depending on the details, while it has been estimated at about $1 billion.
The project has been divided into two parts - land and sea - approximately 200 km each.
Meanwhile, in continuation of the efforts made by the sultanate’s government to attract investments for oil and gas exploration, the ministry has signed a new exploration and production sharing agreement (EPSA) with Oman Lasso Exploration and Production Karwan.
The agreement was signed in Muscat on behalf of the sultanate by Dr Mohammed bin Hamad Al Rumhy, Minister of Oil and Gas, and by Amrou Al Sharif, president and chief executive officer of Oman Lasso Exploration and Production Karwan.
Under the agreement, the company will explore for oil and natural gas in Block 54 which occupies an area of 5,632 sq km located in Al Wusta Governorate, said the report.
The commitments of the company are to drill several wells during the exploration period. The government does not bear any financial commitment during the exploration period, it added.