TEHRAN, Nov 16 (Reuters) - Turkish Energy Minister Hilmi Guler held talks with his Iranian counterpart in Tehran on Saturday on expanding the two countries' gas ties, an official from Turkey's embassy told Reuters on Sunday.
Turkish Energy Ministry sources had told Reuters last month that the two neighbours had resolved problems on planned investment in Iran's South Pars gas field and they may sign a production deal in November.
The embassy official said Guler arrived on Saturday.
Iran's Oil Ministry news website SHANA reported he had met with Iranian Oil Minister Gholamhossein Nozari the same day, but did not say whether the two sides had signed any deals or whether they would meet again on Sunday.
"Negotiations on the development of three phases of the South Pars gas deal are underway," Iran's ISNA news agency quoted Nozari as saying on Sunday.
Ankara and Tehran failed to finalise expected energy agreements during a visit by Iranian President Mahmoud Ahmadinejad to Turkey in August.
The two countries signed an agreement last year on joint gas production and export under which Iranian gas would be exported to Europe through Turkey and Turkey would produce 20.4 billion cubic metres (bcm) of natural gas in Iran's South Pars field.
The investment would amount to $3.5 billion.
Turkey has proposed the use of Iranian gas for the planned Nabucco pipeline, seen as a means for European Union markets to diversify away from reliance on Russia by gaining access to Caspian and Middle East gas.
The pipeline will run across Turkey to Hungary and Austria through the eastern Balkans.
Ankara imports 10 bcm of gas from the Islamic state, about 30 percent of its annual natural gas needs, but it has been looking to increase imports as its consumption is growing fast.
Earlier this month Turkey asked Iran for up to 8 bcm a year of additional natural gas, and also requested a discount on the price to cover any new investments needed to import the gas.
ISNA on Sunday quoted Nozari as saying the two sides had also "discussed the possibility of increasing gas exports" to Turkey, without giving further details.