Malaysia to develop oilfield in Iran

Fri, 23 May 2008 12:56:09

Malaysia signs a $300-million agreement with Iran for developing an oilfield in the Persian Gulf, a senior Iranian oil official says.

The memorandum of understanding, signed between the Iranian Offshore Oil Company (IOOC) and its Malaysian partner in Kuala Lumpur, is worth $300 million at initial phase and is expected to grow to $1.5 billion later, Mohammad-Ali Ghayem, an IOOC director, said.

The joint project to develop an Iranian oilfield is part of a Tehran-Kuala Lumpur bid to expand cooperation in oil and natural gas sectors, Ghayem, director of the IOOC Engineering, Procurements, Construction and Project Execution, was quoted by IRNA as saying.

Ghayem did not name the oilfield. However, the field is located in southern Bushehr province in the Persian Gulf.

The contract will be finalized next month and its implementation phase will begin next year, he added.

Implementation of the project adds to the country's energy capabilities and creating 500 permanent jobs and 2,000 temporary jobs, the official concluded.

coutesy presstv