Russian company gets a US$1-billion contract for oil rigs in Iran

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Russian company Krasnye Barrikady has signed a US$1-billion contract for the construction of five offshore drilling rigs, Oilprice.com reports. According to the media, the deal was signed by the firm’s CEO, Aleksandr Ilichev, and the head of Iran’s Tasdid Offshore Development Company, Ehsan Mousavi.

By the terms of the deal, Russia will transfer its rig-building know-how to the National Iranian Oil Company and set up an offshore and onshore rig overhaul hub in southern Iran. It is expected that Chinese companies will also be engaged in this part of the deal, Mousavi told local media.

Krasnye Barrikady is to construct the first rig for the Iranian side in two years in Khorramshahr, in the southern oil-rich province of Khuzestan.  The rig is meant to match the geological features of the South Pars oil and natural gas field in the Persian Gulf.

The abovementioned deal is a part of Iran’s plans to develop the crude oil reserves at South Pars. According to Iran Oil Minister Bijan Zanganeh, the country plans to start pumping oil at South Pars by March next year.