Iran, Malaysia sign historic gas deal

Iran, Malaysia sign historic gas deal
Wed, 26 Dec 2007 17:50:23
The Golshan gas field

Iran has signed a multi-billion-dollar deal with Malaysia's SKS to develop two major gas fields in the southern province of Bushehr.

The National Iranian Oil and Gas Company and the SKS signed a $16 billion contract to develop Golshan and Ferdows gas fields, Shana news agency reported.

Iran's Oil Minister Gholam-Hossein Nozari said on Wednesday that the SKS will develop the upstream part of the gas fields with an investment of six billion dollars within five years.

He added that another deal on the production of liquefied natural gas (LNG) with an estimated $9-10 billion dollar investment would be ready for signing soon.

Nozari said the deal was the biggest investment in Iran's energy sector adding that Tehran would be choosing its future partners from Asian countries because of their lucrative energy markets.

Despite US efforts to discourage international firms from investing in Iran, the SKS is the second Asian company which has recently signed a major energy deal with Iran.

China's biggest refiner, Sinopec, signed a $2 billion dollar agreement with Iran to develop the Yadavaran oil field on Dec. 9.

AKM/HGH/RE