The Norwegian oil and gas company, DNO, had signed a memorandum of understanding (MoU) with the National Iranian Oil Company (NIOC) to conduct a study on the development of the Changuleh oil field in western Iran, reported Reuters.

The field is located near to Iraq’s western borders and it was discovered in the late 1990s but never developed. It is estimated to hold more than 2b  barrels of oil. NIOC pointed that the development could take place over two phases, with an initial plan calling for six producing wells, according to UPI.

DNO’s Managing Director, Bjorn Dale, said that Iran presents an obvious and exciting next step in expanding DNO’s footprint in the region. This comes as the company’s shares rose nearly 8% percent on the news.

The deal with DNO came as Iran tries to bring attract foreign investors to its energy sector as it slowly reopens following years of isolation because of Western sanctions. Iran is a member of the Organization of Petroleum Exporting Countries (OPEC) working to regain a market share lost to sanctions. The country’s total production of oil in October was 3.9mb, with an increase of 5.6% compared with September output.