Feasibility Study for Iran-Oman Gas Pipeline Yet to Begin

Oman is yet to appoint a consultant to conduct a feasibility study for the Iran-Oman gas pipeline, which could probably delay the implementation of the project.

"[Work for] the feasibility study at the moment is being kicked off. We have not finalised the tender regarding the feasibility study. We need to do the feasibility study first," Salim Nasser Said Al Aufi, undersecretary of the Ministry of Oil and Gas, told the Times of Oman Sunday.

In March, Muscat and Tehran inked initial agreement to build a $1 billion submarine pipeline which will supply gas Iranian gas to Oman.

Iran and Oman signed a memorandum of understanding in 2009 to build a 200 km undersea pipeline. Last year, the two countries inked a gas supply deal where Iran would supply gas to Oman for 25 years via undersea pipeline. The deal has been valued at about $60 billion. 

Talking about difficulties facing the project, the Omani official said, "We need to agree exactly in which direction the pipeline is going. We need to finalise the feasibility study. We need to make sure that whoever is doing the study is not impacted by the sanctions on Iran and so on. So, it is not an easy project."  

Oman's Minister of Oil and Gas Mohammed bin Hamad Al Rumhy had earlier said that the Iran-Oman gas pipeline project should be completed by the end of 2017, Times of Oman stated.