Iran and Russia sign deal on oil field

Iran’s Petroleum Engineering and Development Company has signed a deal with Russia’s Tatneft to develop the dormant Zagheh heavy oil field in Iran.

Zagheh is located 25 kilometres from the port city of Deilam.

The deal, which was signed yesterday, will bring production capacity at the oil field to 7,000 barrels per day in the first phase and 55,000 in the second phase.

The first well of the oil field, which was drilled many years ago, had been abandoned; however there are now plans to gain more accurate data on the heavy oil field.

Drilling of 11 wells, including nine production wells, one delineation well and a wastewater disposal well, will be carried out.

The field, which is located in south-western Iran, will start production within 24 months, the companies said.

Russia is seeking more local ventures in Iran as well as helping to restart Zagheh.