Iran will soon sign a deal on exporting gas to Bahrain and Bahrain will invest in the giant South Pars natural gas field, Iran's foreign minister said in comments published on Tuesday.
In a quote posted on Shana, the oil ministry website, Manoucher Mottaki, foreign minister, said: "According to agreements, Bahrain will invest in South Pars phases and Iran will take part in Bahrain's refining and petrochemical industries, and finally Iran's gas will be exported to Bahrain."
South Pars is on the Iranian side of the world's largest known gas reservoir not associated with oil production. The reservoir in the Gulf waterway is shared with Qatar.
The Iranian section is divided into 24 phases and Iran is hoping to generate huge income from development.
The website said: "Mottaki said Bahrain's oil and gas minister will come to Tehran soon and the agreement between two countries will be signed."
Bahrain signed a preliminary agreement with Iran in 2008 to import 1 billion cubic feet of natural gas per day.
Bahrain, which has a Shi'ite Muslim majority, suspended gas talks in February 2009 for several months after an Iranian official reportedly made comments that appeared to question the country's sovereignty.
Sunni Gulf Arab rulers are wary of Shi'ite power Iran's foreign policy ambitions. Bahraini media reported in October last year that the talks would be resumed and Iranian and Bahraini officials met to discuss the deal in April.
Iran has the world's second largest gas reserves but has struggled to develop its oil and gas sector as Western firms steer clear because of UN and US sanctions over Tehran's nuclear energy programme. (Reuters)For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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