Oman and Iran plan to complete the development of the Kish gas field in the Gulf by 2012 with the sultanate footing the bill of up to USD 12 billion. An agreement is expected to be signed at the end of 2008 so the plant can start producing gas for Oman by 2012. The project will involve a 200km pipeline, mostly underwater, to Musandam and Sohar. Phase one of this project will transport gas to Oman at a rate of 1 billion cu/ft per day and then rising to 3 billion cu/ft. Iran and Oman signed a deal in April to jointly develop Iran’s Kish gas field in the Gulf at an estimated cost of between USD 7 billion and USD 12 billion, but did not give a timeline for the project at that moment.
