Russia's Rosneft, Iran's NIOC to team up on oil and gas projects

|About: Rosneft Oil Company OJSC (RNFTF)|By:, SA News Editor

Rosneft (OTCPK:RNFTF) and the National Iranian Oil Co. have reached an outline deal to cooperate on several oil and gas projects in Iran worth as much as $30B, says Rosneft boss Igor Sechin.

Sechin says the preliminary deal paves the way for legally binding documents to be signed within a year, although it is not clear how the investments would be split between the two sides; he sees production from the joint project plateauing at 1.1M bbl/day.

The potential collaboration would further strengthen Rosneft’s hand in the Middle East after already securing a number of deals in the region, including the acquisition of a majority stake in Iraqi Kurdistan’s main oil pipeline.