May 26, 2016
Iran has awarded a contract worth more than US$1 billion to a Russian shipbuilder for the construction of five offshore drilling rigs to be used in Iran’s section of the Persian Gulf shelf, a company official told Reuters.
Iran is set to make a 15 percent down payment on the US$200 million price of the first rig it has ordered.
Russia and Iran have signed several memoranda of understanding regarding a broad range of energy issues, including power plant construction, oil exploration and production projects and trade agreements for petroleum products.
Earlier this week, Iranian Deputy Oil Minister Rokneddin Javadi confirmed plans to ramp up oil production over the course of 2016, and said there is no chance of the country joining any output freeze.
The Qatari leader of OPEC has said that attracting new investments in the oil sector would require the barrel price to increase to $65, but the price hovered just under 50 on Wednesday.
The next OPEC meeting will occur on June 2nd, during which its members may push for a production freeze agreement for the second time in two months. The 13-member bloc’s last meeting in mid-April almost led to such an agreement, however, Saudi Arabia pulled out at the last moment.
Russia and Iran have set sights on long-term cooperation in a broad range of areas, including power plants, exploration and production projects and swap agreements for petroleum products.
By Zainab Calcuttawala for Oilprice.com