Agreement Between Austrian and Russian Companies for Development of Iran's Oil Fields

The Austrian company OMV announced on Friday, June 2, that it has signed a memorandum of understanding with the Russian company Gazprom Neft for the development of oil fields in Iran. Gazprom Neft, a subsidiary of the Russian gas giant Gazprom, has already signed two agreements to study the oil fields of Changuleh and Cheshmeh Khosh with Iran. The Austrian company OMV has also signed several memorandums for studying the Cheshmeh Khosh fields, the Zagros block, and the Pars oil field. According to the report, the Austrian company stated that it intends to develop two oil blocks in Iran in collaboration with the Russian company. The report did not specify the blocks, but Robert Lechner, a spokesperson for OMV, told Radio Farda that the memorandum was signed in general terms and is not about a specific project. He also mentioned that studies in the mentioned fields are ongoing. Reuters noted that OMV began its activities in Iran in 2001 and was responsible for explorations in the Mehr block in western Iran. The company left the country in 2006 following sanctions against Iran's nuclear program and resumed cooperation with Iran after the sanctions were lifted in January of last year. The agreement between the Russian and Austrian companies regarding Iran's oil fields comes as Kirill Molodtsov, Deputy Minister of Energy of Russia, announced on Friday that Iran is currently offering 'engineering, development, and production' contracts based on a new type of oil contract to Russian companies, and they hope to sign contracts this year. Russia and Iran have signed seven agreements for oil field studies, the highest number among foreign countries. These fields include Cheshmeh Khosh with Gazprom Neft, Changuleh, Ab Timour, and Mansouri with Lukoil, the Aban and Paydar-e Gharb fields with Zarubezhneft, and the Dehloran field with Tatneft. Bijan Zanganeh, Iran's oil minister, also announced on Wednesday in an interview with Argus that Iran has recently signed a preliminary agreement with them for the Farzad B, North Pars, and Kish fields with Russian companies. All three mentioned fields are gas fields. Iran and Russia also signed an oil purchase agreement on Friday. According to TASS, Alexander Novak, the Russian Minister of Energy, stated that his country will receive 100,000 barrels of oil per day from Iran. According to Mr. Novak, after changes in conditions and oil prices, this contract was finally signed after two years of negotiations. In this context, Russian oil projects in Iran are expected to reach '20 billion dollars'. Negotiations between Iran and Kuwait and Saudi Arabia for the development of the joint Arshutotal field: 'We will invest in Iran if the US does not impose new sanctions'. Iran: 'American companies are not allowed to participate in oil tenders'. 'Only a quarter' of Iran's oil reserves are extractable. Negotiations between Lukoil and Tehran for the development of two oil fields in Iran.