Turkey denies exit from South Pars gas field

April 21, 2010 - 0:0

TEHRAN – The Turkish foreign minister rejected news regarding the annulling of a contract with Iran to operate in three phases of South Pars gas field.

""The two countries had expanded their cooperation in the field of energy including projects in South Pars,"" the Islamic Republic of Iran Broadcasting quoted Ahmet Davutoglu as saying in a news conference with his Iranian counterpart, Manouchehr Mottaki, in Tehran on Tuesday.
He clarified that natural glitches may exist; nevertheless, Turkey will continue its cooperation in the energy sector with Iran.
Davutoglu appreciated Iran’s new initiatives for extending cooperation and expressed hope that new grounds have been created in a bid to approximate the two neighbors’ relations more than before.
The Mehr News Agency reported on Monday that an all-Iranian consortium will be vested with developing the South Pars gas field phases 22-24 as a result of the Turkish Petroleum International Company’s waver.
Iran and Turkish Petroleum International Company (TPAO) signed an agreement, worth some $7 billion, in 2008 based on which the Turkish side undertook to produce 20.4 billion cubic meters (bcm) of natural gas annually from three development phases of Iran’s South Pars gas field.
In October 2009, Iran gave TPAO a one-month deadline to finalize the deal but extended the deadline by three months.
----------Iran-Turkey trade can reach $20b
The Iranian foreign minister said that the two countries’ trade reached $11 billion last year and has the potential to hit $20 billion.
He pointed out that Turkey and Iran enjoy cordial mutual trade relations and should closely work on further enhancing economic ties.