03/28/2008 02:45 am ET Updated May 25, 2011

Malaysia Signs $16 Billion Gas Deal With Iran

Iran has signed a $16bn gas contract with Malaysia, intensifying its efforts to shift its flow of oil and gas deals towards eastern countries and bypass US-led pressure to thwart investment by western companies.

The contract, signed on Wednesday between Iran's Pars Oil and Gas Company and Malaysia's SKS Ventures, owned by Malaysian billionaire Syed Mokhtar Al-Bukary, includes the $6bn development of the Golshan and Ferdows gas fields in the next five-and-a-half years.

The second leg of the contract is worth $10bn and is earmarked for the production of liquefied natural gas from two offshore fields in the southern province of Bushehr. It was not clear what the time frame for the LNG project would be.

Read more on Financial Times