Crescent Petroleum: agreed price not cheap
Posted: 27 February 2006
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Crescent Petroleum said its gas purchase contract with National Iranian Oil Company (NIOC) to import natural gas from the Salman field is over 90 per cent complete, and both parties have invested to date over $1 billion.
 “This contract was signed in 2001 after seven years of professional and transparent negotiations. The wells have been drilled and the 30-inch pipeline has already been laid by NIOC to Crescent’s offshore facilities.
"Although Crescent understands there has been a technical delay of a few months in the completion of one of NIOC's offshore gas gathering platforms, this is not unusual in the industry these days,” Crescent clarified amidst publish reports saying the contract has come under fire from several Iranian officials who say Iran will lose out because gas prices have risen sharply since the contract was agreed.
Crescent said the report released by Reuters yesterday “is misleading to characterise the gas as cheap, as the agreed gas contract price conforms to current regional and UAE gas market realities” adding that the first gas deliveries are expected by the middle of this year.
Crescent added: “For clarification, Dana Gas is not importing Iranian gas into the UAE and is not a party to the Crescent-NIOC contract. As for any issues of gas pricing, there are proper mechanisms in the contract for addressing these over the 25-year life of the agreement, which is normal in the industry.”
Posted by Editor Pipeline Magazine
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