Rosneft and Iran sign oil and gas development deal

Rosneft and Iran sign oil and gas development deal

Nov 02, 2017
3 min read
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Rosneft and Iran’s National Iranian Oil Company signed agreements for oil and gas exploration and production, the Russian company said.

The Russian firm said it signed the strategic deal that will focus on “developing long-term and mutually beneficial cooperation in key areas of business, including exploration and production, field services, local application of technology, as well as training for personnel,” it said in a statement.

The two companies have agreed on the ‘main principles’ of Rosneft’s participation in Iranian projects and approved a plan, the statement added, without giving more details.

Rosneft’s collaboration with Iran would strengthen its position in the Middle East – last month it acquired a majority stake in Iraqi Kurdistan’s main oil pipeline.

Speaking to reporters in Tehran, Rosneft CEO Igor Sechin told reporters the preliminary deal covered projects worth up to US$30 billion and paved the way for legally-binding documents to be signed within a year, Reuters reported. Output from the joint project is seen plateauing at 55 million tonnes per year (1.1 million barrels per day), he said.

“We are talking about several oil and gas fields, which we will develop with our partners,” Sechin said, adding that Rosneft has invited Iran to develop offshore and other projects in Russia.

Sechin said the preliminary agreement envisaged some swap deals, as well as oil and oil products deliveries, Reuters reported.

The agreement was signed during President Vladimir Putin’s visit to Iran on Wednesday, a move seen as Russia establishing a greater influence on the region.

The two countries signed a total of six memorandum of understanding for oil and gas cooperation deals, including those with Rosneft and Gazprom, according to Shana - Iranian state oil ministry’s news website.