The agreement is expected to be signed using the modified buy-back formula, which allows energy firms to spread costs that can be later recouped through the sale of products over a 25-year period.

NIOC signed deals with Italy’s Edison International and Croatia’s INA earlier this year for the development of the Moghan 2 and Dayyer blocks respectively (MEED 8:4:08).

Last month, Vietnam’s state-run Petrovietnam Exploration Production Corporation won an exploration and development deal on the Danan oil block, as part of a four-year deal agreed with NIOC.

Iran formally offered 17 onshore and offshore oil blocks for development to international oil companies in February, 2007.