Russia to help Iran boost oil output by 1.1 mb/d

EghtesadOnline: Russia says it has worked out a “road map” with Iran over cooperating in production of crude oil that envisages investing billions of dollars to increase the country’s oil production by at least 1.1 million barrels per day (mb/d).

News ID: ۷۸۰۲۶۴

04 November 2017

Igor Sechin, the head of Russia’s Rosneft energy giant, was quoted by media as saying that the road map had been enshrined in a preliminary agreement that his company had signed with the National Iranian Oil Company (NIOC) earlier this week, according to PressTV.

The agreement, he emphasized, envisaged that Russia and Iran would cooperate over a number of “strategic” projects worth up to $30 billion.

Sechin emphasized that the agreement – which had been signed during the visit to Tehran by Russia’s President Vladimir Putin – paved the way for legally-binding documents to be signed within a year.

Output from the joint project is seen plateauing at 55 million tonnes per year (1.1 million barrels per day), Reuters quoted him as telling the reporters.

“We are talking about several oil and gas fields, which we will develop with our partners,” Sechin emphasized, adding that Rosneft has also invited Iran to develop offshore and other projects in Russia.

The official’s remarks came against the background of a rise in the level of cooperation between Iran and Russia over energy issues.

A key agreement that the two countries signed in 2014 on the same front involves purchasing up to 500,000 barrels per day (bpd) of Iranian oil by Russia.

Based on it, Moscow would buy up to 500,000 bpd of Iranian oil in exchange for Russian equipment and goods. It called for swapping around 300,000 bpd via the Caspian Sea and the rest from the Persian Gulf.

NIOC chief Ali Kardor was quoted by the media in Tehran as saying last Saturday that the agreement would come into effect “in the near future”.

Kardor added that Iran was about to receive 50 percent of payment in euros and the rest in goods and services.

Iran and Russia signed several agreements to promote cooperation over energy issues during Putin’s visit. The agreements included one that envisages exports of natural gas from Iran to Pakistan and thereon India by Russian companies – most importantly Gazprom.