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Iran signs $740 million agreement on oil project

Posted March 14, 2018 7:00 am

The Associated Press

TEHRAN, Iran (AP) - Iran's state-run oil company has signed a $740 million agreement with a Russian-Iranian consortium to develop two oil fields near the Iraqi border.

Under the agreement signed Wednesday, there will be a 48,000-barrel daily production of crude for a 10-year span in oil fields in Aban and West Paidar in the southwest near the border with Iraq. Iran currently produces 36,000 barrels of crude in both fields.

The consortium includes the Russian state-controlled Zarubezhneft Oil Co. and the Iranian private Dana Energy Co.

This is the second energy contract with foreign companies following the landmark 2015 nuclear deal with world powers.

Last year Iran signed a $5 billion agreement with France's Total SA and a Chinese oil company to develop its massive offshore natural gas field.

Director General of Russian state-controlled Zarubezhneft Oil Co. Sergey Kudryashov, seated left, Managing Director of the National Iranian Oil Company, NIOC, Ali Kardor, center, and CEO of Iranian private Dana Energy Co. Mohammad Iravani, sign documents for a $740 million agreement to develop two oil fields near the Iraqi border, in Tehran, Iran, Wednesday, March 14, 2018. (AP Photo/Vahid Salemi) The Associated Press

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