Oman and Iran sign gas deal

Oman and Iran have agreed to build a $1bn pipeline across the Gulf, and to export 10bcm of gas per year to Oman. State news agencies reported the deal on 12 March, during Iranian President Hassan Rouhani’s two-day visit to Oman, his first trip to the Gulf since becoming president in June. Oman has been looking to buy gas from Iran for years, and negotiations for this specific deal began months ago; in November, Iranian oil minister Bijan Zanganeh had predicted a contract would be signed in mid-March (GSN 958/12). What was signed at Al Alam Palace was an “initial agreement”, which the Omanis described as a “good start”; the two sides have still not agreed on a price for the gas, however, which will come from Iran’s North Pars field.