Rosneft and NIOC look to cooperate on Iran projects worth US$30bn

rosneftniocIran's oil industry needs around US$200bn in investment by 2021. (Image source: QiuJu Song/Shutterstock)Russian oil producer Rosneft and Itran's  National Iranian Oil Company (NIOC) have signed a road map for strategic cooperation in oil and gas projects in Iran, which Rosneft’s chief executive Igor Sechin said will involve a total of US$30bn of investments

The agreement was signed by Sechin and Ali Kardor, managing director of NIOC, during President Putin’s visit to Iran in early November. 

A statement from Rosneft confirms the parties’ “high level of interest in developing long-term and mutually beneficial co-operation in key areas including exploration and production, field services, local application of technology, as well as training for personnel.” It further adds that the parties have agreed upon the main principles of Rosneft’s participation in projects in Iran and approved the path forward. 

Iran and Russia signed six oil MoUs during Putin’s visit, according to Amir Hossein Zamaninia, Iran’s deputy petroleum minister for international affairs and trading. These included a deal signed by Iranian Minister of Petroleum Bijan Zangeneh and his Russian counterpart Alexander Novak, which outlines strategic Tehran-Moscow energy cooperation. They are also understood to include deals with Russia's Gazprom. 

The agreements come as Tehran is seeking foreign investment to rebuild its oil industry after years of sanctions, and Russia seeks to extend its political and economic influence in the Middle East. With the USA recently decertifying the nuclear deal, and western firms holding back on committing to Iran amidst fears that the USA might reimpose sanctions, Russian and Chinese firms could stand to benefit, say analysts.

 

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