Iran and Oman have signed an agreement to study an undersea gas pipeline said Alireza Kameli National Iranian Gas Exports Company (NIGEC), reported Press TV.

“Gas exports to Oman and entry into its retail market will make it possible to sell the Iranian natural gas to the region, especially Asian countries,” he said.

Two separate agreements were signed for studies in the offshore and onshore sections, with Omani Oil Minister Mohammad bin Hamad al-Rumhy visiting Tehran.

The offshore section will enjoy a 200 kilometer pipeline from Kuh-e Mubarak in Iran to Oman’s Sohar port, while the onshore section of the pipeline in Iran will be built for another 200 km from Rudan to Kuh-e Mubarak.

They will take five and six months respectively and the project should cost $60 b.

Iran’s Minister of Petroleum Bijan Zangeneh explained that Oman will pay the entire cost of the pipeline and the related infrastructure.

In other news, the Times of Oman said that the two countries are also discussing the joint development of the shared Hengam oilfield.

80% of the field lies in Iranian territory and is estimated to contain 700 m barrels of oil and 56 bcm of gas.

Production had already started in late 2010; Iran now draws 15,000 b/d from the field, down from 28,000 b/d, while Oman’s crude production from the field has halved overtime to 5,000 b/d.