Energy firms Royal Dutch Shell and Total are likely to sign a non-binding deal on Wednesday to develop Iranian oil and gas fields, according to news agency Bloomberg.

The South Azadegan and Yadavaran oil fields as well as the Kish natural gas deposit are expected to be developed by the two firms after they sign a “heads of agreement” (HoA) with the Iranian oil ministry, according to an unnamed official, quoted by the news agency.

It is not known which company is likely to develop which of the fields.

The deals, if they materialise will be pave the way for the first European companies to re-enter Iran’s oil fields since nuclear-related sanctions were lifted in January 2016.

In November, Total and China National Petroleum Corporation singed a HoA with the National Iranian Oil Company to develop phase 11 of the South Pars offshore gas field.

Later in the month, oil services giant Schlumberger signed a memorandum of understanding with the National Iranian South Oil Company, an NIOC subsidiary to study several onshore oil fields in Iran.