During a state visit by Russian President Vladimir Putin to Iran, the two countries announced preliminary energy agreements worth $30 billion, the Financial Times reports.
Russian energy companies signed six energy agreements with Iran, the Iranian Deputy Oil Minister for International Affairs, Amir Hossein Zamanini, said, according to the Financial Times. He noted that Russia and Iran had agreed on the need for “strategic co-operation in the energy sector.”
The agreements are non-binding. The deals constitute an initial step toward “binding” contracts, Igor Sechin, CEO of Rosneft, said, according to the Financial Times. These binding agreements could be signed within a year, Reuters reports.
“We are talking about several oil and gas fields, which we will develop with our partners,” Sechin said, according to Reuters. Production from the joint projects could reach 55 million tons of oil per year, he added.
Sechin noted that the two countries are considering swap agreements, Reuters reports.
The details of the agreements—breakdown of investments, exploration and develop locations, etc.—remain unclear.
Rosneft has been expanding its footprint in the Middle East. The company recently announced an agreement with the Kurdistan Regional Government (KRG) to acquire a 60% stake in the regional government’s pipeline, Reuters previously reported.