Iran and Russia's Gazprom sign primary deal for energy cooperation

The National Iranian Oil Company (NIOC) and Russian gas producer Gazprom signed on Tuesday a memorandum of understanding worth around $40 billion, Iran's oil ministry's news agency SHANA reported.

The deal was signed during an online ceremony by the CEOs of both companies on the day Russian President Vladimir Putin arrived in Tehran for a summit with his Iranian and Turkish counterparts.

🚨 #Iran's national oil company and Russia's #Gazprom have signed an investment agreement worth $40 billion, making it the largest ever investment in Iran's #oil industry.
Investments include development of gas and oil fields, and investment in Iran's LNG projects among others pic.twitter.com/OUQukqKHUP

— MAYSAM BIZÆR میثم بی‌زر (@m_bizar) July 19, 2022

Gazprom will help NIOC in the development of the Kish and North Pars gas fields and also six oil fields, according to SHANA. Gazprom will also be involved in the completion of liquefied natural gas (LNG) projects and construction of gas export pipelines.

Iran sits on the world’s second-largest gas reserves after Russia, but US sanctions have hindered access to technology and slowed development of gas exports.

Putin's visit to Tehran is being watched closely as Russia's invasion of Ukraine has reconfigured the global oil and gas market, pushing prices to high levels which contribute to higher living costs and rising consumer inflation.

(Reuters)