Led by Alexey Miller, the Management Committee Chairman, a Gazprom delegation paid a working visit to the Islamic Republic of Iran.

Within the visit the delegation met with Gholamhossein Nozari, Iranian Oil Minister and Seifullah Jashnsaz, Managing Director of the National Iranian Oil Company.

The parties discussed the top-priority steps towards cooperation deepening in the oil and gas area including the creation of a joint venture to implement oil and gas fields exploration and development projects, the construction of oil and gas processing and transport facilities in Iran. The meeting members also agreed to set up a joint venture dealing with oil and gas projects in Iran, Russia and third countries. A possible execution of swap transactions was also under discussion. The Iranian party raised an issue concerning Russian gas supplies to northern Iran based on long-term agreements.

Following the negotiations results, a Memorandum of Understanding was signed between Gazprom and the National Iranian Oil Company. To implement the Memorandum provisions a joint working group will be formed.

A working meeting between Alexey Miller and Mahmoud Ahmadinejad, the President of the Islamic Republic of Iran was held. During the meeting the parties exchanged their opinions in relation to the possible development of the mutually beneficial long-term partnership between Gazprom and Iran.

The parties discussed the interaction within the preparation for the next meeting of the Gas Exporting Countries Forum. The development of the global gas balance was named as a major challenge of the Forum. A requirement to further develop the Forum as a standing international organization was emphasized.

Background:

At present, Gazprom is engaged in the project of the South Pars gas condensate field development (phases 2 and 3) jointly with the French Total and the Malaysian Petronas.

Having the exclusive rights for the Iranian oil and gas resources, the National Iranian Oil Company (NIOC) is dealing with hydrocarbons exploration and development in Iran and abroad.

Iran is the world’s second largest country in terms of proven gas reserves (28.13 tcm).  In 2006 natural gas production in Iran accounted for 105 bcm, consumption – 105.1 bcm, export – 5.7 bcm (to Turkey) and import – 5.8 bcm (from Turkmenistan). The gas consumption in the country is growing in a very quick pace – by circa 7 per cent per annum.