Crescent is ‘optimistic’ about Iran gas deal

An Iranian vice-president said in comments reported on Sunday that he would oppose the contract unless aspects of the deal were "corrected". He did not specify the areas he opposed but a key sticking point in the long-running talks has been the price.

"I'm optimistic, very optimistic," Hamid Zaheri, general manager in Iran of the privately owned firm, told Reuters, adding negotiations with the Oil Ministry were continuing.

Asked how much remained outstanding in the talks between the two sides, he said "not much", without elaborating.

Iran and Crescent Petroleum, based in Sharjah in the UAE, have been locked in negotiations about the price of gas exports from the Iranian offshore Salman field since 2006.

Zaheri, the Crescent official, suggested price and volume of gas were still being negotiated but declined to go into details or say when he believed a final agreement could be reached.

Iran said that its latest talks with Crescent were "very positive" and the company's chairman in June said it expected to start importing gas in three months.

The UAE needs gas from the $1-billion project to meet rising domestic demand from industry and power plants.

Crescent's affiliate, Dana Gas will process and transport the gas to utilities and industrial users in the UAE.

Experts have previously said Iran had yet to complete building facilities to pump gas to the UAE, while Crescent's offshore pipeline and processing facilities for the gas have long been completed.

Tehran has no pipeline from the offshore Salman field back to Iran and therefore limited options for domestic use.

Crescent had expected first deliveries of the gas in mid-2006. The initial agreement was for the supply of 600 million cubic feet per day.