Crescent Petroleum
Crescent News

115 - 08/15/10

Russia enters into Iran\'s gas market/UAE\'s proposal archived

Despite of Iran\'s East-oriented policy in developing oil and gas industries, Russian\'s oil companies in addition of changing the traditional approach, are perusing long term involvements in Iran\'s gas market by singing some contracts with the Persian Gulf countries.

Mehr News Agency 07/08/2010

 

Russia enters into Iran\'s gas market/UAE\'s proposal archived

Despite of Iran\'s East-oriented policy in developing oil and gas industries, Russian\'s oil companies in addition of changing the traditional approach, are perusing  long term involvements in Iran\'s gas market by singing some contracts with the Persian Gulf countries. 

According to the reporter of Mehr News Agency  because of increasing sanction and international pressures against Iran\'s oil and gas industries, orientation of Petroleum Ministry\'s policy toward developing the Country\'s Petroleum Industry has been shifted from West to the East, therefore the analysts name China, Malaysia and the Persian gulf countries as the strategic partners of Iran\'s Petroleum industry.      

Based on this policy, different contracts in upstream sector of Petroleum industry, namely developing North Azadegan fields, Yadavaran, phase 11of the South Pars, North Pars, Garmsar exploration block & Masjed Soleiman, have been granted to the Chinese companies and contracts for developing oil and gas fields of Resalat, Ferdowsi & Golshan have been, in turn, granted to the Malaysian companies.

Early estimates indicate that the total value of different oil and gas contracts, in upstream and downstream sectors, granted to the Chinese and Malaysian companies in recent years is almost near $70 Billion, but oil and gas cooperation with the Persian Gulf countries including UAE, Kuwait & Bahran have not been developed considerably comparing with the different contracts to China and Malaysia. 

Not only, no new contract has been signed with our southern neighbors but also some of the previously signed contracts, including the gas export to the UAE, are still undecided and in suspension.  

Russia enters into Iran\'s gas market

 

Iran, presently holding over 29 trillion cubic meters of gas reserves, possesses a glorious prospect in regional & international markets. Understanding this,   Russia - the world\'s largest gas producer- has recently proceeded to wisely select a capable partner for the regional oil and gas partnership.  

 

Although since many years ago till now Russian companies never had a place in the Persian Gulf\'s oil and gas market , but they now are trying to establish their footprint in this strategic hydrocarbon sector by signing several strategic contracts with UAE and Iraqi Companies   


Based on the above, the Russian Rosneft signed an agreement with the UAE based Naft Al Hilal Company in last May. Experts consider this agreement as a new gate for the Russian gas to enter Nobacco gas pipeline project enabling Moscow to recompense its previous failures in Nobaco pipeline.  

 

After being actively involved in the gas industries of Yeman, Egypt, Iraqi Kurdistan and Persian Gulf southern costs, The UAE based Al Hilal Company reached an agreement with the Austrian OMV & the Hungarian MOL, as Nobacco\'s partners, to be involved in this gas project.

 

Following this new strategy of Russia, a contract for exploration activities in over 1243 Square Kilometer of Sharjah concession with the value of $60 Million was signed between Rosneft and Crescent.   

 

Based on this contract, the Russians, entering the world gas paradise, are doing their maximum efforts to make their strategy of playing the first role in World\'s gas market comes true. While holding 102 oil and gas reserves and 162 Trillion Cubic feet of gas reserves (excluding South Pars, North Pars, Golshan and Ferdowsi) Iran holds much superior qualification & deserve to be stably involved in this geo-energy sector.    

 

Archiving UAE\'s proposal to invest in South Pars

 

Experts believe, one of the reasons of Iran\'s absence in the Persian Gulf countries gas market, is the unclear situation of contract for exporting gas to the Emirates, along with years of delays in implementation of this contract. 

 

Reza Pakdaman, while stating that Russia has been always after its own national interests in oil and gas industries, called the policies for shifting the traditional approach of different Russian companies to take part in oil and gas industries of Iraq and Emirates,  a part of this new strategy of Russia, he told Mehr reporter: presently there are various decision making authorities outside the Petroleum Ministry which this have caused some oil and gas agreements not to be implemented in a short period of time.        


The said Energy & Economy Expert called the stability in implementing the commitments as a major factor in absorbing investment and foreign contribution in particular in the Persian Gulf region. He continued: revising and implementation of contract for exporting gas to UAE can surely provide further cooperation in Iran\'s oil and gas industries.

 

Mahmood Khaghani, also stated that one of the reasons of Russia\'s involvement in Persian Gulf gas market is to take a step forward for setting the gas price in world strategic markets. He told Mehr: by participating in UAE\'s oil and gas projects Russia has established a sort of neighboring border with the Persian Gulf.  


While involvement of the Russian oil and gas companies in the Persian Gulf is being increased, some UAE companies have already proposed (around 2 years ago) to take part and finance the developing phases of South Pars but their proposals have not yet been welcomed by the Petroleum Ministry!