Russia to invest more than $50bn in Iran’s oilfields

Russia plans to invest more than $50bn to develop Iran’s oil and gas fields.

The two countries have also agreed to cooperate in energy sector research to develop new technologies.

Russian presidential aide Yuri Ushakov told reporters in Moscow: “Energy is the most promising sphere for cooperation between Russia and Iran.

“Leading Russian oil and gas companies such as Gazprom, Gazprom Neft, Rosneft, Lukoil, Zarubezhneft and Tatneft are systemically working on the development of fields in Iran. The expected amount of investments is more than $50bn”.

Iran granted an oil contract last month to Russia’s Zarubezhneft to re-develop Aban and West Paydar oilfields.

In 2016, Gazprom, Rosneft, Lukoil, Gazprom Neft, Tatneft and Zarubezhneft signed a memorandum of understanding (MoU) with the National Iranian Oil Company (NIOC) to develop fields.

Some of these companies have already explored fields and submitted their development proposals to Iran’s oil ministry.

Russia’s oil output rose in March 2018 to 10.97 million bpd from 10.95 million bpd in February. This makes Russia the world’s biggest crude producer.

It is said Iran would need a $200bn investment to fully develop its upstream and downstream projects by 2021.