Rosneft, NIOC agree on O&G cooperation during Putin visit to Teheran

Russian oil company Rosneft and National Iranian Oil Company have signed an oil and gas strategic cooperation agreement during a visit of the Russian President to Teheran.

Rosneft said on Wednesday that the two sides signed the “Road Map and Key Terms of Strategic Cooperation in the Field of Oil and Gas” during the visit of the Russian President Vladimir Putin to the Islamic Republic of Iran.

According to the company, this document confirms the parties high level of interest in developing long-term and mutually beneficial cooperation in key areas of business, including exploration and production, field services, local application of technology, as well as training for personnel.

The parties also agreed to the main principles of Rosneft’s participation in projects in the Islamic Republic of Iran and approved a path for the future.

Iran’s oil and gas

Iran is considered as an oil and gas powerhouse and has the world’s largest gas field named South Pars in the Persian Gulf, which the country shares with Qatar. The field is one of the country’s main energy resources and covers an area of 9,700 square kilometers, 3,700 of which belong to Iran.

Iran’s portion is estimated to have some 14 trillion cubic meters of gas reserves and some 18 billion barrels of gas condensates. This is roughly 7.5 percent of the world gas reserves and around half of Iran’s gas reserves.

As for offshore oil production, the National Iranian Offshore Oil Company, a subsidiary of NIOC, has a production of 640,000 barrels of crude oil per day from its Kharg, Bahregan, Lavan, and Siri oil fields.