Iran and Russia on Sunday signed a contract to develop an oil field in the southern part of the country, Xinhua reported.
It was signed between the Iranian Petroleum Engineering and Development Company and Russia’s Tatneft Oil Company for the development of the Zagheh oil field.
The contract, worth USD 1 billion, is to develop the oil field in Bushehr province on the Persian Gulf coast.
After the completion of the first stage of the project, to be completed in two years, it will produce 7,000 barrels of oil per day. In the second phase, after five years, its capacity will increase to 55,000 barrels per day.
Meanwhile, Russian Oil Company Tatneft denied on Monday it had agreed to develop an oil field in Iran.
“Tatneft Group have not entered into any agreements, contracts and have not accepted any other undertakings relating to oil and gas projects in Iran,” it said in a statement.
