The National Iranian Oil Company (NIOC) and Russian gas producer Gazprom (GAZP.MM) signed on Tuesday a memorandum of understanding worth around $40 billion, Iran’s oil ministry’s news agency SHANA said.
The deal was signed during an online ceremony by the CEOs of both companies on the day Russian President Vladimir Putin arrives in Tehran for a summit with his Iranian and Turkish counterparts.
Gazprom will help NIOC in the development of the Kish and North Pars gas fields and also six oil fields, according to SHANA. Gazprom will also be involved in the completion of liquefied natural gas (LNG) projects and construction of gas export pipelines.
Iran sits on the world’s second-largest gas reserves after Russia, but U.S. sanctions have hindered access to technology and slowed development of gas exports.
Putin’s visit to Tehran is being watched closely as Russia’s invasion of Ukraine has reconfigured the global oil and gas market, pushing prices to high levels which contribute to higher living costs and rising consumer inflation.