The seizure of the oil ministry building in London, the latest episode of wrong policies

According to the exclusive report of Energy Press, the “Crescent” contract is known as one of Iran’s most profitable foreign contracts. For many years, this contract has turned into legal conflicts in various governments, and finally a court ruling was issued against Iran. But first of all, you should take a close look at the content of this contract and its margins: “Crescent” contract is a contract between the Emirati company “Crescent Petroleum” and the National Iranian Oil Company, which was concluded during the time of Bijan Zanganeh. The initial negotiations of this contract started in 1997 and finally, in 2001, it led to a mutual understanding. According to the terms of this contract, it was decided to export 500 million cubic feet of gas per day to the UAE through the pipeline in the Persian Gulf. to begin in the UAE.
In Iran, this contract was defined under the Salman oil and gas field development plan. According to reports, the gas from Salman field was supposed to come to Siri Island and after increasing the pressure, it was supposed to go to Ras Al Khaimah, UAE. The delivery point in the contract was Mubarak Island, a small island near Abu Musa. In 2010, the development of the gas sector was completed and the field was ready for gas export. “PetroIran” company as the contractor and “Niko” company as a subsidiary of the National Oil Company prepared the facilities. Also, the platform that was the point of delivery of Iranian gas to the UAE, as well as about 90 kilometers of the pipeline, which brings the gas to Ras Al Khaimah, was implemented by the Emiratis.
This contract was signed during the government of Seyyed Mohammad Khatami, but in 2005, it was criticized by the officials of Mahmoud Ahmadinejad’s era for the low price of 18 dollars per 1000 cubic meters, or 98.5 million dollars per year. With the change of government and the inauguration of Mahmoud Ahmadinejad’s team, it was discussed that the “Crescent” contract has set a low price for gas export, and this led to the formation of disputes over the implementation of this contract. At that time, many media close to the government as well as responsible officials considered this agreement as a “betrayal” of national interests. However, according to experts, the Ministry of Oil, as the executor of the contract, continued the various stages of this project and the gas reached Siri Island. According to “Nasrullah Zarei”, the vice president of Oil Engineering and Development Company, the Crescenti delegation made an official visit to the aforementioned facility and confirmed that the gas is ready to be injected into the pipeline that stretches to Ras Al Khaimah.
According to an agreement signed in 2001, the National Iranian Oil Company agreed to supply oil and gas from the Salman oil and gas field – part of which it shares with the UAE – through a pipeline that runs through the Persian Gulf for 25 years from 2005. to export gas to Crescent. However, under pressure, the National Iranian Oil Company had to stop the promised deliveries. In 2009, Crescent started a lawsuit against the National Iranian Oil Company. This contract was canceled in 2010 and the Hague Court in 2013 held Iran responsible for the damages caused to Crescent. Then in 2016, the National Iranian Oil Company filed a counterclaim in a court in London, arguing that the contract was void because it was “corruptly procured” and not recognized in Iran’s domestic law. In his reading of the situation, the judge referred to English law and ruled that the contract was not void because neither the National Iranian Oil Company nor Crescent had agreed that Iranian law should prevail in disputes.