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July 20, 2022 at 7:16 pm

Russian and Iran Ink $40 Billion Oil and Gas Agreement…

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by Julianne Geiger at Oil Price

Ahead of Russian President Vladimir Putin’s visit to Iran on Tuesday, his second foreign trip since he invaded Ukraine in February, Russian Gazprom and the National Iranian Oil Company have inked a $40-billion agreement for the development of oil and gas fields.

Moscow and Tehran signed the $40-billion Memorandum of Understanding (MOU) just ahead of Putin’s arrival in the Iranian capital. The deal, in its preliminary form, will see Gazprom assist Iran’s state oil company in the development of both oil and gas fields and the construction of LNG project pipelines.

According to Iran’s PressTV, the deal includes a $10-billion project in Kish and North Pars gas fields in the Persian Gulf, along with the $15-billion project to boost pressure at South Pars, which is the largest gas field in the world, shared by Iran and Qatar.

Additionally, the deal will see Iran’s national oil company cooperate with Gazprom to complete LNG projects and construct export pipelines for gas.

Finally, the MoU paves the way for energy swap deals between the two countries.

The Iranian National Oil Company is…

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