Russia, Iran Pursue Joint Development Of Oil & Gas Fields

Via OilPrice.com,

Iran and Russia are considering the joint development of as many as 10 oil and gas fields in Iran, media have reported following a meeting between Iranian officials and a Russian delegation led by Deputy Prime Minister Alexander Novak.

The proposal has come from the Iranian side amid talks about the development of other oil and gas resources in the country.

Novak told reporters that the sides had discussed specifically the development of six oil fields and two gas deposits. Gazprom was considering taking part in the development of the Kish and North Pars gas fields and building an LNG production facility, Novak also said, as quoted by TASS.

“Our oil companies are considering six oil fields, and Gazprom is considering two fields: Kish and North Pars, for joint development with the Iranian side, followed by the implementation of a natural gas liquefaction project and supplies to world markets,” he said, adding “Now, virtually all technical issues on this gas project have been settled. The evaluation of commercial conditions with Iran is currently underway.”

The Iranian government is in talks with Russia’s Gazprom about investments worth as much as $40 billion, Iran’s oil minister Javad Owiji said during the visit.

The amount is stipulated in a memorandum of understanding but, according to Owiji, “Some of these agreements are already turning into real contracts.”

Russia and Iran have been actively forging closer ties in the past few years, and that process got an additional push last year after Russia joined the small but growing club of Western-sanctioned countries following its invasion of Ukraine.

“The oil and gas industry is a backbone for the economies of our countries. Strengthening bilateral cooperation in this area will undoubtedly increase the economic sustainability of Russia and Iran,” the Russian government said in a statement during the visit, as quoted by Reuters.