Armenia has moved one step closer to an ambitious plan to buy natural gas from Iran and sell it to Georgia.

In a statement, Armenia’s Ministry of Energy, Infrastructure and Natural Resources said a memorandum of understanding (MoU) was signed recently to increase gas imports from Iran.

The statement said that the MoU was signed between Armenia’s Energaimpex company and the National Iranian Gas Export Company during a visit by an Armenian delegation to Tehran from October 31 to November 1, reported Asbarez.com news service.

It added that Yerevan is seeking to increase natural gas imports from Iran in the near future without specifying how much more gas will be imported based on the MoU.

Armenia currently imports up to 500 million cubic meters of Iranian gas annually through a pipeline built in 2008.

Iran had already announced that it plans to triple gas exports to Armenia by 2019 and also sell gas to Georgia through Armenia.

Earlier in July, Iran’s Oil Minister Bijan Namdar Zanganeh told reporters in Tehran that Georgia has also sealed a basic agreement with Iran to import gas from Iran through Armenia.

He said Iran plans to conduct a trial export of gas to Georgia through Armenia within the next few months. If the trial proves successful, Iran will finalize the agreement to export gas to Georgia, he added.

The transit of gas to Georgia through Armenia will be carried out through a new organization that will be established by Iran and Armenia, Zanganeh said.

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Iran Oil minister has said contractor companies would only receive agreed amounts if they increase the recovery rate in Iranian oil fields.

Bijan Namdar Zanganeh told the press on Tuesday morning that at least $100bn in investment were required to revive the industry to fresh conditions where Iran’s excavation companies would provide services to other countries.

Zanganeh was speaking to the press on the sidelines of an agreement with Pars Oil and Gas Company (POGC) to work on four massive oil fields as the first deal after reforms introduced to overall scheme of oil contracts.

 Iran oil minister: “The industry currently requires $100bn in upstream section.”

“Iranian domestic companies would provide engineering services in oil and gas to other countries; a priority is also put upon improving the well recovery rate of Northern and Southern Yaran, Koupal, and Maroun,” Zanganeh added. “The industry currently requires $100bn in upstream section; we believe mergers and new offshoots of excavation and exploration companies would not weaken the mother holding, but would also attract investments and facilitate inflow of new technologies; the ultimate outcome would be improved and increased production and revival of antiquated oil wells.”

Zanganeh also said that development of South Azadegan oilfield was a priority post-JCPOA times; “currently, the recovery rate in Sarvak formations in shared field is mere 5 per cent, virtually rendering the remaining 95 per cent to other predators; other fields including Rag Sefid, Asmari, Koranj, Pakdel, Shadegan, etc., are in the queue for new contractors, with 600 billion barrels of crude in West Karoun massive field, and with only 150 billion barrels extractable with current recovery rates,” he detailed. /MNA

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IRAN and Norway have signed 3 MoUs in opening credit lines for both sides, with Norway pledging a credit line of €1bn for Tehran to promote trade.

Foreign Minister of Norway, Børge Brende is in a tour of Iran and met with his Iranian counterpart Javad Zarif earlier on Wednesday. They discussed bilateral trade, where both sides highlighted improved relations in banking and fiscal cooperation along with cooperation in other sectors.

The meeting produced 3 MoUs signed by Zarif and Brende and respective export finance authorities of both sides. According to one MoU, Norway will open a credit line worth €1bn for Iran to finance infrastructural projects planned in Iran.

Mr. Brende had also visited President Rouhani, Parliament Speaker Ali Larijani, Ali Shamkhani, Secretary of SNSC, Leader’s Adviser Ali Akbar Velayati, and Minister of Oil Bijan Namdar Zanganeh in separate meetings.

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