National Iranian Oil Company (NIOC) and Russias Tatneft agreed a deal worth around US$700mn to develop the Zagheh heavy crude oilfield based in southwest Iran.
The deal is aimed to produce 7,000 bpd heavy crude from the oilfield - which had been left inactive for several years - in the first phase and boost it to 55,000 bpd in the next phases, reported the Mehr news agency.
Buyback basis
Iran's state TV said a final contract will be signed within three months on a "buyback" basis, which will see the Russians build the facilities but will not own them, and will receive their costs plus a pre-agreed profit in return.
Iran's oil reserves
Iran's in-place oil reserves are estimated at 560 billion barrels, of which 140 billion barrels are recoverable, including 70 billion barrels heavy and extra heavy crudes.
Heavy crude oilfields excluded
The NIOC managing director Ahmad Qalebani had announced earlier that Iran has excluded developing heavy crude oilfields of the oil industry's first priorities.
Like non-associated oilfields, heavy crude oilfields have also been excluded of the list of prioritised oil development plans, Qalebani added, according to the ISNA news agency.
