National Iranian Oil Company (NIOC) and the Korea Gas Corporation (KOGAS) have inked deals to study the development of the Balal offshore gas field. In addition, NIOC and KOGAS signed an agreement for KOGAS to purchase future Iranian liquefied natural gas (LNG) exports. Lastly, South Korea is to participate in the construction of a subsea gas pipeline from Iran to Oman, The Maritime Executive wrote.

The agreements were concluded during a visit of the South Korean delegation led by country’s President, Park Geun-hye, to Tehran. Roknodin Javadi, MD of NIOC, explained that the KOGAS is to carry out technical studies and present proposals on the Balal offshore gas field project. The proposals will also include the possibility of producing LNG through using the gas from the field, Javadi added.

Iranian Oil Minister, Bijan Zanganeh, pointed out that Seoul currently buys 400,000b/d, compared to 100,000b/d it had purchased in the previous context of international sanctions against Tehran.

Owning the world’s second largest gas reserves after Russia, Iran appears set to benefit from its status by exporting gas through pipelines to neighboring countries and LNG to other markets overseas, Platts reported.