Iran Signs Multiple Oil and Gas Contracts with Europe

Iran Signs Multiple Oil and Gas Contracts with Europe

Iran has signed multiple contracts with European countries, Russia, Spain, and Italy, for exploration of Iranian oilfields and development of oil and gas projects, reported The Tehran Times.

Tehran signed a contract with Russia’s largest private oil firm, Lukoil to geologically explore oil in the southwestern Khuzestan province worth $6m to be financed by the Russian company. The National Iranian Oil Company (NIOC) concluded a deal with Spain’s University of Barcelona for geophysical exploration and collaborative geological survey in southern Hormozgan province, to follow upon an earlier 2014 plan worth $2m, to be funded by Madrid. And another deal was approved between Tehran and Italy’s University of Naples Federico II for geophysical exploration and collaborative geological survey in the western province of Kermanshah, with Italians covering the entire cost of project of up to $4m.

Meanwhile, Italy is reported as poised to sign deals worth up to $18.4b with Iran to cover various sectors, including energy and steel, Reuters wrote in connection with Iran’s President, Hassan Rouhani’s, visit to Rome. An Italian company, Saipem, co-controlled by Eni, has signed a Memorandum of Understanding with Iran’s Parsian Oil and Gas Development Company to cooperate on major oil and gas projects in Iran, including the revamping and upgrading of the Pars Shiraz and Tabriz refineries, wrote Reuters in related news. Although no financial details were given, a source close to the deal revealed the estimated investment between $4b and $5b for building a 2,000 km long pipeline.

In addition, Iran is also seeking mining deals worth $5.4b with Italy and France, which may further affect an already struggling sector, hit by a sustained rout in commodity prices, the Tasnim News Agency informed. Tehran had previously announced a $29b investment package for the mining projects, aiming at attracting foreign investors as well as increasing the mining sector’s share in the country’s GDP.

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