Iran and Oman have agreed to revive a stalled gas pipeline project to pump Iranian gas to Oman, according to a report by Iranian state news agency IRNA.

The two countries discussed the project during Iranian Minister of Petroleum Javad Owji’s visit to Oman.

One of the biggest regional energy projects,  the plans for undersea pipeline had not made progress due to various unfavourable circumstances. Iran has been trying to sell its large reserve of natural gas which has been unused as a result of economic sanctions by Western countries. Meanwhile, Oman needs more natural gas to support its economical development given its dipping production even to meet domestic demand.

Iran and Oman made the initial agreement in 2004 which provided that Iran would be pumping 30 mcm a day of gas to Oman as of 2008 and then increase the level of gas exports to 70 mcm a day by 2012.

The two countries also reached another agreement in 2013 according to which Iran was expected to pump 28 mcm a day of gas to Oman for 15 years through a pipeline laid on the bed of the Persian Gulf. 

The agreement was estimated to earn Iran more than $1 billion annually.

The Iranian petroleum minister and the Omani officials also agreed on the development of a joint oil and gas field. The Hengam field is the only field shared by Iran and Oman which produces Iran’s lightest oil. The field has both oil and gas layers.

"Considering the oil and gas resources of Oman, as well as the capability of Iranian contractors and manufacturers, there is a very good potential and capacity for exporting Iran's technical engineering services in the oil and gas to this country, and it was agreed to tap the capabilities of Iranian companies in the fields upstream and downstream sectors of oil and gas industries, refineries, petro-refineries and gas facilities,” said Owji in an official statement.