Russian majority state-owned energy company Gazprom and the National Iranian Oil Company (NIOC) have signed a $40bn agreement for the development of oil and gas fields.

As per the memorandum of understanding (MOU ), Gazprom will help NIOC in developing oil and gas projects in the Middle Eastern country.

The Iranian Deputy Minister of Oil said the cooperation’s important axes are the $10bn project to develop the Kish and North Pars gas fields in the Persian Gulf, and to produce more than ten million cubic metres of gas per day.

The firms will also work on the development of six oil fields and a $15bn project to increase the pressure of the South Pars gas field, located on the maritime border between Iran and Qatar.

NIOC and Gazprom will also cooperate on gas and product swap deals, completing LNG projects, construction of gas export pipelines, and other scientific and technological cooperations.

The largest foreign investment deal of Iran’s oil industry was signed between the two firms during an online ceremony.

In a press statement, NIOC said: “The relations between Iran and Russia under the 13th administration have been put on a new path, with the support of Iranian President Ebrahim Raisi and Russian President Vladimir Putin, and the two countries want to expand relations at all economic and political grounds.”

Khojastehmehr highlighted that the investments to develop the oil and gas fields will be made with the priority of joint fields.

“Based on the oil and gas production plans, it is predicted that in the horizon of the calendar year of 1408, with the investment of $160 billion, the daily oil production capacity will reach 5.7 million barrels and the gas production capacity will reach 1.5 billion cubic metres per day,” said Khojastehmehr.

Last year, Iran launched the Jask oil terminal and pipeline project along the Sea of Oman to evade the Hormuz Strait for crude oil exports.