Gazprom Neft signs oil deal as Russia adds to presence in Iran

[TEHRAN] Gazprom Neft PJSC signed an agreement with Iran's state oil company to study the potential for oil production from two fields, becoming at least the third Russian energy producer in the Persian Gulf nation.

Gazprom joins Lukoil PJSC and Zarubrezhneft OAO in Russia, Iran's Oil Minister Bijan Namdar Zanganeh said in Tehran at the signing ceremony. Salbali Karimi, managing director of the Iranian Central Oil Fields Co, and Alexander Dyukov, chairman of the management board and chief executive officer of Gazprom Neft, signed the memorandum of understanding.

Gazprom will study the potential of Iranian oil fields Cheshmeh-Khosh and Changuleh, according to a poster at the ceremony. Royal Dutch Shell Plc and Total SA have also signed initial agreements with Iran since sanctions were lifted in January.

Iran dramatically boosted crude sales in 2016 after they were curbed for years by sanctions over its nuclear program. Under a deal for a collective cut by members of the Organization of Petroleum Exporting Countries to shore up prices, Iran was given an exemption and allowed to boost output by 90,000 barrels a day to 3.797 million barrels a day starting Jan 1.

BLOOMBERG