Oman, Iran ink deals on oil field, gas pipelines: Official

• 

Oman and Iran have inked agreements to build two gas pipelines and an oil field along their maritime border, according to Oman's Energy Minister, less than two weeks after Iran's President visited the Sultanate.

Iranian President Ebrahim Raisi's visit on May 23 occurred amid delayed international discussions to restart an agreement on Tehran's nuclear program, leaving the Islamic Republic sanctioned, despite meeting all conditions set by the chief nuclear agency, IAEA. 

The official Oman News Agency announced at the time that the countries had signed memoranda of understanding regarding oil and gas, but provided no further specifics.

According to the AP, Energy Minister Mohammed Al-Rumhi stated on Saturday that the agreements were "related to the development of the two gas pipeline projects linking the two countries and the Hengam oil field."

A deal was struck almost two decades ago to allow Iran to supply gas to Oman, but the project never materialized.

Read next: Iranian minister: Sanctions couldn't slow oil industry progress

Sanctions against Iran hindered efforts to complete the project and may make it harder to implement the new agreement. The Hengam oil field is located near the United Arab Emirates in the vital Strait of Hormuz.

Oman maintains extensive political and commercial relations with Iran and served as a go-between for Tehran and Washington in the run-up to the original nuclear deal in 2015.

Stop-start discussions to salvage the agreement resumed in April last year after the US unilaterally withdrew from it in 2018 and reimposed harsh sanctions on Iran, forcing Tehran to backtrack on its obligations.

Iran was relieved of punishing economic sanctions in exchange for limiting its nuclear programs under the 2015 agreement.

The Sultanate, which borders Iran across the Gulf of Oman, suffered economic hardship as a result of the pandemic, with the GDP falling 6.4% in 2020 and government debt skyrocketing.

In mid-April, statistics showed that the volume of trade between Iran and Oman in the year 1400 in the Iranian calendar (March 21, 2021-2022) increased by 53% over the previous year, according to a report published by the Iran-Oman Joint Chamber of Commerce.

On his account, the chairman of the Iran-Oman Joint Chamber of Commerce Mohsen Zarrabi said that Iran's exports to Oman were $438 million in 1999, adding that Iran's exports to Oman increased to $716 million in 1400.

Raisi's visit to Oman was his second to a Gulf country since he took office in August 2021.

In February, he visited Qatar, where he met Emir Tamim bin Hamad Al-Thani and attended a summit of gas exporting countries.