The Iranian state run oil company NIOC signed an Iranian Petroleum Contract (IPC) worth $740 million with a Russian-Iranian consortium on March 14th, to develop two oil fields near the Iraqi border, Kallanish Energy reported.

The consortium includes Russian state-controlled Zarubezhneft Oil Co., and the private Iranian Data Energy Co.

The agreement stipulates that 105 million barrels of crude oil will be produced over a 10-year period, in oil fields located in Aban and West Paidar in the southwest of the country; near the Iraqi border.

The contract is indicative of strengthening Russian-Iranian relations, which could lead to other Russian companies investing in the Iranian Energy sector. This is the second energy contract signing by the NIOC since the 2015 nuclear deal.

Iranian sources have said that this IPC is the first of a few to be announced in early April, Kallanish Energy additionally reported.