Crescent denies gas agreement with Iran

April 12, 2011 - 0:0

TEHRAN -- The general manager of the Crescent Petroleum Company in Tehran denied reports about reaching an agreement with Iran on exporting natural gas to the United Arab Emirates.

IRNA quoted Hamid Zaheri as saying that no new agreement has been reached and that the case is being studied in the International Court of Justice.
Some Iranian media reported on Sunday that the Crescent Petroleum Company has reached an agreement with Iran on exporting natural gas to the United Arab Emirates at the highest rate in the Persian Gulf region, five times the previously proposed price.
The UAE-based Crescent National Gas Corp. signed a memorandum of understanding with the National Iranian Oil Company in 2001 to import natural gas from Iran’s Salman field through a pipeline jointly built by Iran and Crescent.
According to the MOU, Iran was supposed to export 600 million cubic feet of natural gas per day to the UAE for 25 years starting in 2005.
As oil rallied in the following years, some officials in Iran called for a revision of the price formula. They blamed the price dispute for the delay in the export of gas to the UAE.
Crescent decided to seek international arbitration for what it called the failure of Iran’s state oil company to fulfill the terms of the gas export contract.
However, Iranian officials repeatedly stated that the NIOC-Crescent deal would only be implemented if it served Iran’s national interests