Iran, Oman agree to cooperate on oil, related services

Tehran, May 23, IRNA – Iran and Oman agreed on oil activities in the three axes of integrated development of Hengam joint field, exporting technical and engineering services, and exchanging petrochemical products. Iranian Petroleum Minister Javad Owji’s trip to Oman has been in line with Iran's oil negotiations with the regional and neighboring countries so that Iran can use its existing capacities in the oil and gas industry to play the most important role in the energy market. The most important agreement made during this trip was the integrated development of the Hengam joint oil field. Accordingly, Hengam field will be a joint field between Iran and Oman. Despite the high volume of oil and gas reserves, the integrated development of joint fields in the Middle East is an issue that has never been met. However, the Western companies that have enjoyed the largest share in developing the Middle East oil and gas fields have always waged dispute with regard to developing these fields in order to have the maximum benefit. The second axis that turned out to be an agreement between Iran and Oman during Owji's visit to Muscat was to export technical and engineering services in the upstream and downstream sectors. Therefore, Iran can rely on its domestic capabilities to implement oil and gas projects in neighboring countries. In addition to generating revenue for the country, it will lead to the developing political and economic relations. The third axis of agreements was the participation of the two countries in exchanging petrochemical products. Iran has increased capacity of producing petrochemical products over the last few years, which has provided the country with the opportunity to participate in international markets. Last year, Iran set $15-billion record of petrochemical exports meaning that the two countries’ partnership and using the existing capacities can expand this market for Iran. By relying on this diplomacy, Iran can both circumvent sanctions and increase its oil exports. Follow us on Twitter @IrnaEnglish