TEHRAN, Aug 01 (Shana) -- Alireza Kameli, managing director of National Iranian Gas Exports Company (NIGEC), said a tender will be held to pick contractors for development of a gas pipeline project to send Iran's natural gas to Oman through Persian Gulf waters immediately after the announcement of preliminary studies over the project.

Kameli said preliminary activities regarding the project are on the go and geodesy operations in marine areas in both Iranian and Omani territories are over and seabed evaluation data are yet to be garnered for the purposes of the study.

He predicted that studies on the land section of the project will end within the next two months and the marine section will finish in three months.

"As soon as the result of the studies are available, the two sides will take steps to put the project out to tender for selecting developers," the official added.

Seven foreign companies have declared interest to join Iranian companies in construction of Iran-Oman undersea gas pipeline either as investors or developers, he added. Speaking to Shana early July, Kameli said that immediately after end of studying phase and signing a contract for the project's construction, it will be ready in a matter of two years.

Iran cannot enter serious negotiations with foreign companies before the release of surveying and geodesy results.

By implementation of this gas export pipeline, current capacity of 1 billion cubic feet of Iran gas export to Oman will increase to 1.5 billion cubic feet, Kameli added.

He said National Iranian Gas Company (NIGC) and Iranian Offshore Engineering and Construction Company (IOEC) as well as the Omani company responsible for the project have already held several trilateral talks.

The official called the negotiations between Iranian and Omani side positive, adding that surveying and geodesy of Iran part of the pipeline has been done and for the Omani part, it is underway.

Top Iranian and Omani officials including the petroleum ministers of the two states have underlined the importance of execution of Iran-Oman undersea pipeline, the official added.

He said that all preparations needed for execution of the project including the formation of joint venture is underway.

The 400-kilometer pipeline, stretching from Iran to Oman is defined in two onshore and offshore sections. Land part of the gas pipeline extends for 200 kilometers from Rudan to Mobarak Mount in southern Hormozgan province. The seabed section between Iran and Sohar Port in Oman will stretch for another 200 kilometers.

According to reports, the construction of the subsea pipeline is estimated to cost $1.5 billion.

Iran and Oman have signed basic agreements based on which Iran will export a daily amount of 28 million cubic meters (mcm) of gas to Oman. Almost a third of the gas will be used in spare liquefaction facilities of Oman’s Qalhat plant and the rest will be consumed in the Persian Gulf sultanate’s domestic market. Iran will accordingly use the LNG produced for exports to European and Asian markets.

By SHANA