Tehran: Iran signed a deal reportedly worth up to $1 billion (Dh3.67 billion) with Russia's Tatneft yesterday to develop an oil field, a rare example of new foreign investment in the oil and gas sector of a country under tight economic sanctions.
Oil Ministry website SHANA said the development at the Zagheh oil field, on the Gulf coast of Bushehr province, would produce 7,000 barrels per day (bpd) in its first phase, growing to 55,000 barrels in a second phase of the contract.
Iran, the world's second biggest oil exporter, says it produces 3.5 million bpd.
"This private company is one of the world's reputable companies working in extraction of heavy oil which is why we wanted to use its experiences," Oil Minister Rostam Qasimi was quoted by Mehr news agency as saying.
