Russia’s Zarubezhneft Oil Company signed a Memorandum of Understanding (MoU) with the Iranian Industrial Development and Renovation Organization (IDRO) for the development of the Susangerd Oil Field, according to the Islamic Republic News Agency (IRNA).

Under the MoU, a joint expert task force will be formed, and then the two firms will work with Iran National Oil Company (NIOC), if a final agreement is reached, in order to negotiate and seal the development agreement, Persia Digest reported.

“With actions taken regarding Susangerd oilfield, it is anticipated that in late February the technical proposal for the development of this oil field will be presented to the National Iranian Oil Company by IDRO”, said Nasrollah Zarei, managing director of IDRO.

“After signing an MoU on the development of Susangerd oil field with the Iranian National Oil Company (NIOC), and obtaining technical information, upstream field studies by experts of IDRO Oil and HOT ENG of Austria as a consultant in the preparation of MDP development of the field was on the agenda,” he pointed out.

Zarei expects the amount of initial investments required for the oilfield to reach $900 million.