Iran plans $6bn of oil projects with Russian energy group

25 October 2015

Deals lined up with Zarubezhneft during Tehran visit by Russian energy minister

  • Iranian media says two countries plan $35-40bn project package
  • State-run Zarubezhneft specialises in overseas oil field development
  • Iran offered gas swap deals by Gazprom

Iran has agreed to award Russian state-owned energy group Zarubezhneft work on several oil projects worth $6bn, according to Iranian media reports.

The deal was signed as part of a series of agreements between the two countries during a 50-member Russian delegation to Tehran led by Russia’s Energy Minister Alexander Novak.

Iran’s Press TV reported that the two countries have planned a package of projects that are collectively worth $35-40bn.

It is unclear which projects or sectors of the Iranian oil industry Zarubezhneft plans to enter.

Moscow-based Zarubezhneft is a state-controlled company that specialises in the exploration, development and operation of oil and gas fields outside of Russia. Its largest presence is a joint venture in Vietnam with PetroVietnam.

Iran has drawn up new contracts to attract more foreign investment in its oil and gas sector to tie-in with the lifting of nuclear-related sanctions against its economy.

Tehran is thought to be lining up agreements to develop its oil and gas fields after the sanctions are lifted.

During the delegation to Tehran, Russian energy group Gazprom offered gas suppliers to Iran under a swap agreement, and oil deals were also under consideration, Novak told the Russian media.

Iran has previously used swap deals with its northern neighbours to cut the logistics costs of supplying its northern regions with gas.

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