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Iran offers to improve energy ties with Turkey in Pars
Speaking to Anatolia, the TPAO official, who requested to remain anonymous, said the corporation was in close cooperation with the Iranian side and that TPAO is committed to making the best of the opportunities offered by Turkey’s southern neighbor.
Iran had previously offered Turkey the opportunity to explore for natural gas in three locations on the border of the South Pars region that were not expected to hold significant amounts of gas in their reserves. However, drilling in the newly allocated locations is guaranteed to yield acceptable amounts of natural gas.
Underlining that Iran needs “serious investments for better exploitation of its gas sources,” the TPAO official said officials from both countries have met periodically to discuss how to improve energy relations. Mentioning sanctions, the official said: “The specter of new sanctions has discouraged foreign entrepreneurs in Iran. Almost all foreign firms have ceased operations in Pars due to US sanctions.” Noting that technical negotiations are ongoing on joint projects in Pars, the official reiterated Turkey would not renege on a joint project with its energy ally.
Iran is Turkey’s second-biggest supplier of natural gas after Russia.
During Prime Minister Recep Tayyip Erdoğan’s visit to Tehran with Energy Minister Taner Yıldız last October, the two neighbors signed a number of deals to facilitate the efficient flow of gas through Turkey to Europe, including accords on allocating three of Iran’s South Pars gas fields to TPAO, allowing Iranian gas to be transported via Turkey and allowing Turkmenistan’s natural gas to be pumped to Turkey via Iran, a $3.5 billion joint development project. Turkey expects Iranian gas can help the planned Nabucco pipeline supply Europe and lessen the continent’s dependence on Russian resources.
During the October visit Yıldız and his Iranian counterpart also discussed the establishment of a joint working group to study the possibilities of substituting the three less-productive fields in the South Pars region with the new ones, as confirmed by the TPAO official’s remarks on Monday. Yıldız had previously said the project has political support in Ankara.
Meanwhile, Total S.A. CEO Christophe de Margerie said on Monday the European oil giant will cease gasoline sales to Iran if the US passes legislation to penalize fuel suppliers exporting to Tehran.
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