TEHRAN (AFP) – Iran and Malaysia on Wednesday signed a multi-billion dollar contract to develop two offshore Iranian gas fields, officials said.
Iran’s Pars Oil and Gas Company (POGC) and Malaysia’s SKS signed the 6 billion dollar (4.15 billion euro) contract for development of Golshan and Ferdos gas fields at a ceremony in Tehran.
“The estimation for the investment for both the upstream and sweetening sectors of the project is about 6 billion dollars,” Oil Minister Gholam Hossein Nozari said.
The project would be completed in about five and half years, he said.
Golshan’s reserves amount to more than 50 trillion cubic feet (1.5 trillion cubic meters) of gas and it is expected to produce 2.5 billion cubic feet (70 million cubic meters) of natural gas per day.
Ferdos’ gas in place stands at around 10 trillion cubic feet (285 billion cubic meters) and it would produce more than 880 million cubic feet (25 million cubic meters) of gas on a daily basis.
The contract comes amid mounting pressure on European and Asian energy giants not to cut business with Iran at a time of international tensions over its nuclear programme.