Iran has signed a $900 million deal with Iranian Offshore Engineering and Construction Company (IOEC) to develop the first phase of its Kish offshore gas field in the pristine waters of the Persian Gulf. This was announced by Iranian state television over the weekend.
The gas field holds an estimated 1.5 trillion cubic meters of gas.
IOEC, one of the first Iranian offshore General Contractors, was founded in 1993 to fabricate and install production facilities necessary for the oil and gas industry. This industry in Iran has been particularly hampered by punitive and extraterritorial U.S. sanctions which have been in place since the Iranian Revolution of 1979, keeping most foreign companies scarce.
Under the contract, IOEC is to launch production of 28 million cubic meters per day of gas in 14 months, which is to be sent to installations in Assalouyeh on Iran's Gulf coast via a 210-km undersea pipeline, Mohsen Khojastehmehr, head of the state-run National Iranian Oil Co, told state television.
Iran sits on the world’s second-largest gas reserves after Russia, but U.S. sanctions have scared off potential foreign investors, hindered access to technology and slowed development of gas exports.