Russian firm strikes $740mn oilfields deal with Iran

State controlled Zarubezhneft takes a majority stake in venture that will see output raised in two Iranian oilfields.

The deal could herald a spate of tie-ups between the Islamic Republic and Russia.
The deal could herald a spate of tie-ups between the Islamic Republic and Russia.

Iran and Russia have penned a deal to develop two oilfields in Iran, according to Iranian state TV and cited by Reuters.

The National Iranian Oil Company (NIOC) has reached an agreement with Russia’s Zarubezhneft regarding the fields, reported the SHANA news agency.

Iranian oil minister Bijan Zanganeh said, “This is a very important point. This is the first time that we are signing a deal to develop oilfields with a prominent Russian company.”

He added, “We hope that it won’t be the last deal. It was a difficult negotiation and I say congratulations to both parties.”

The oilfields in question, Aban and Paydar-e Gharb, are located in the west of the country and, according to SHANA, are owned jointly by Iran and its neighbour Iraq. At the present time, the combined oil output is around 36,000 barrels per day (bpd).

The 10-year tie-up should see production spike to 48,000 bpd. Zarubezhneft has an 80% share in the deal and its Iranian partner, the privately owned Dana Energy, the remaining 20%.

SHANA reported that the cost of the deal was $740mn. At the signing ceremony, Zanganeh stated Iran was presently in discussions with other major Russian energy companies including Gazprom, Lukoil and Rosneft.

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