August 22, 2008

Crescent gas project will kick off from March 2008

Mehr News Agency quoted Mr Mahmud Zirakchianzadeh MD of Iranian Offshore Oil Corporation as saying that Crescent project, Iran’s gas export to the United Arab Emirates, will kick off from March 20th 2008. The Crescent deal will be Iran’s first experience of exporting gas to a Persian Gulf state. The gas purchase deal of Crescent, also an Emirate firm, with Iran has been held up on a price row for 2 years.

Mr Zirakchianzadeh said that “The platform helps both contracting sides of the Crescent deal, prompting Iran and the UAE to put aside their disagreements and to focus more on the project. Following the installation of Salman field’s platform, the Crescent deal will take effect in the first half of next Iranian year.”

He added that the field’s total output will be 540 million cubic feet per day. To this end, the field is to produce 500 million cubic feet of gas and prevent the burning of 40 million cubic feet of associated gases.

Petroenergy Information Network said that Crescent Petroleum had expected first deliveries of gas in mid 2006. The initial agreement was for the supply of 600 million cubic feet per day. Crescent’s affiliate Dana Gas was to process and transport the gas to utilities and industrial users in the UAE.