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Iran Signals $440 million Agreement to develop gas field from Stressed Gulf

Last updated on September 14, 2019

Two fledgling firms signed a $440 million arrangement Saturday to create a gas field at the sensitive Gulf, together with the petroleum ministry saying it revealed arch-foe the USA could not block the nation with sanctions.

Oil Minister Bijan Namdar Zanganeh said the deal reached between 2 government-owned companies, Pars Oil and Gas Company and PetroPars, to develop the Balal field are the first of several.

Tensions have jumped from the Gulf since a year ago when the US started reimposing sanctions on Iran after unilaterally withdrawing from a 2015 bargain that place curbs on its atomic program.

“Signing this arrangement is… the start of a procedure,” Zanganeh said, quoted from the petroleum ministry’s Shana site.

“That is an indication that we’re still working with sanctions at their summit… We’re living, we’re active and working for Iran’s petroleum business,” the European Union stated.

The sanctions, he added, “haven’t managed to block the advancement of Iranian oil business and its advancement.”

“We do not need to boast, but also the United States can’t stop Iranian oil exports”

The deal aims to achieve a production rate of 500 million cubic feet of gas every day on 34 months.