Iran in talks with UAE to pay fine with gas supply
Iran is in “serious talks” with the UAE Crescent Petroleum to
supply gas in order to pay its fine to the company, Fars news
agency reported.
Reportedly, some senior Iranian oil ministry officials want to
supply gas from Iran's Salman gas field to Crescent Petroleum
instead of paying the fine, the source said.
The UAE-based energy company Dana Gas said in 2014 that an
international tribunal had issued a favorable ruling in the dispute
over a natural gas supply contract between its affiliate Crescent
Petroleum and Iran.
The tribunal ruled a 25-year contract for National Iranian Oil Co
(NIOC) to supply gas to Crescent was valid and binding on both
parties, and that NIOC has been obligated to deliver gas since
December 2005.
Previously, Iranian media outlets quoted the industry minister
Mohammad Reza Nematzadeh as saying that Iran has been fined $18
billion over the case.
NIOC and Crescent signed the 25-year contract in 2001, with the
price linked to oil. Based on the contract, Iran was supposed to
export unrefined natural gas from Salman gas field to the United
Arab Emirates. However deliveries were delayed as oil prices rose
and some officials and politicians in Iran called for a revision to
the gas pricing formula.
The Iranian source said that intensive talks are underway between
Iran’s oil ministry and Crescent, adding it is expected that the
contract price will be amended.
The source further said that the two parties seek to finalize the
talks and implement the deal during the current Iranian fiscal year
(started March 20).
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