Russian Iran Hydrocarbon Investments May Exceed $50 B

Russian Iran Hydrocarbon Investments May Exceed $50 B

Russian presidential aide Yuri Ushakov announced on April 2 that Russia could invest more than $50 billion in Iranian oil and gas fields, Press TV reported.

“Energy is the most promising sphere for cooperation between Russia and Iran. Leading Russian oil and gas companies such as Gazprom, Gazprom Neft, Rosneft, Lukoil, Zarubezhneft and Tatneft are systemically working on development of fields in Iran. The expected amount of investments is over $50 billion,” he stated.

Russian Energy Minister Alexander Novak said that more than ten different Iranian fields have been presented to Russian energy companies for development.

Iranian officials have stated that the country requires $200 billion in investments for both upstream and downstream projects by 2021.

In February, state-controlled oil company Zarubezhneft signed an agreement with Iran’s Industrial Development and Renovation Organization to join in their bidding for the development of the Susangerd Field in southwest Iran.

France’s Total won a $4.8 billion contract for the development in the South Pars gas field in July 2017, the first major western energy investment after the lifting of sanctions on the Islamic Republic in 2016.

In November 2017, Russia and Iran signed six provisional agreements to collaborate on energy deals worth up to $30 billion.

Ushanov also spoke about the possible free trade zone between the Eurasian Economic Union (EAEU) and Iran that may be signed within months.

“The talks on drafting a temporary agreement on the creation of an EAEU-Iran free trade zone have been finalized. The plan is to sign it within months,” Tass news agency quoted him as saying.

The Eurasian Economic Union includes Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.

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