Iran, Russia ink $1bn oil deal

The contract was signed in Tehran on Saturday afternoon between Managing Director of Tasdid Offshore Development Company Ehsan Mousavi and CEO of Russian Krasnye Barrikady Shipyard Alexander Ilyichev.

(MNA) reports:

Worth one billion dollars, the agreement aims to explore and extract oil and gas in the Persian Gulf field worth one billion dollars.

The Russian side will undertake 85 per cent worth of the deal while the National Iranian Oil Company (NIOC) will guarantee the construction of the rigs inside the country.

The drilling rigs are to be built in Khorramshahr port city within next two years in order to break the spell on construction of offshore rigs in Iran.

Speaking during the contract signing ceremony, Iran’s Mousavi said "in early days of South Pars operation, the idea of becoming self-sufficient in various sectors of offshore industry, like field drilling or construction of platforms and other marine facilities, seemed to be far-fetched.”

"The five new rigs will be built in accordance with Persian Gulf conditions and will be capable of offering services in South Pars joint field,” he underlined.

Tasdid Offshore Development Company managing director said the first rig will be delivered within two years adding "domestic production will enjoy a 58% share in the first rig while the figure would grow in following projects.”

Ehsan Mousavi pointed to creation of a credible overhaul center in the Persian Gulf maintaining "the first ever overhaul center for onshore and offshore rigs will be opened in the southern city of Khoramshar.”

"The Iranian center, which will be the first in its own to have valid licenses, will be established in collaboration with Russian and Chinese companies,” the official concluded.