MEOG: Iran signs $40bn Gazprom deal

In this week’s MEOG, Iran seals a major foreign direct investment (FDI) deal from Russia’s state gas giant.

The National Iranian Oil Co. (NIOC) and Russia’s Gazprom this week signed a memorandum of understanding (MoU) covering investment worth around $40bn.

During a virtual ceremony on July 19, a deal was signed by NIOC CEO Mohsen Khojastehmehr and Gazprom deputy chairman Vitaly Markelov that will include field development, product swaps and the completion of midstream projects, including LNG facilities and pipelines.

Khojastehmehr described the deal as one of the biggest foreign direct investment (FDI) deals in the history of Iran’s oil industry and said: “The National Iranian Oil Company does not ignore any investment opportunity.”

Meanwhile, Markelov said: “In accordance with the order of Vladimir Putin, the President of Russia, the senior Gazprom executives attended Tehran last week and we had constructive talks.”

The Ministry of Petroleum’s (MoP) Shana news agency reported that the MoU covers the development of the Kish and North Pars gas fields, pressure enhancement at the supergiant South Pars gas field and the development of six undisclosed oilfields. The parties will also engage on gas and product swaps, while Gazprom will work to complete LNG projects abandoned when sanctions were imposed on Iran in 2012 and construct gas export pipelines. The deal also covers scientific and technological co-operation.