Turkey to supply Iranian natural gas to Europe

Turkey and Iran signed on Wednesday an agreement on the joint exploration of the Islamic Republic's South Pars gas field, bringing closer the possibility of Iran exporting natural gas to Europe via Turkey, RIA Novosti reported.

Turkish TV said the memorandum of understanding, aimed at broadening ties between Turkey and Iran in the gas industry, was signed in Tehran by Iranian Oil Minister Masoud Mirkazemi and Turkish Energy and Natural Resources Minister Taner Yildiz.

The cost of the project is estimated at $4 billion, the Turkish energy minister told journalists.

He said explorations in the South Pars basin were expected to start in early November.

Talks between Turkey and Iran on the deal have been going on since July 2007.

A preliminary deal was signed in November 2008, but was delayed by objections from Washington over Tehran's controversial nuclear program.