Iran says it has notified Crescent Petroleum of its readiness to export gas by pipeline to the UAE.

“We have announced to Crescent Petroleum Company that we are ready to export and all technical and engineering processes have been completed,” says petroleum minister Bijan Zanganeh in an interview with Iran News.

The deal to export gas 600 million cubic feet a day of gas to Sharjah from the offshore Salman field was signed in 2001 but has since been mired in a legal dispute over pricing and allegations of corruption. The pipeline has so far remained unused apart from a test run in 2010, which found leaks forcing transmission to halt.

Zanganeh, who was crucial to the negotiation of the deal under former President Mohammad Khatami added that Crescent Petroleum would have to pay damages if the deal falls through.

In 2005, a tribunal ruled that the 25-year deal signed between the UAE firm and the National Iranian Oil Company was valid and Iran would be obliged to deliver gas due since December 2005.

“Recently, a team came up and measured the pressure, quality, and all the details to make sure we could export,” he added.

Zanganeh who has been a proponent for opening up Iran’s energy sector has had a challenging time convincing hardliners at home on the necessity of foreign expertise and investment.

Iran recently signed a $4.8bn agreement with a consortium led by French energy giant Total to develop Phase 11 of the South Pars gas field.

The deal has come under criticism from those suspicious of western oil companies operating in the country.

Terming the Gulf as an “important market”, Zanganeh said Iran would consider entering it at any cost.