PJSC Gazprom and National Iranian Oil Co. have signed an MOU under which Gazprom would make $40 billion of direct investments in Iran’s oil and gas industry. Highlights of the MOU include development of Kish and North Pars gas fields in the Persian Gulf, pressure enhancement at South Pars field, development of six oil fields, a gas and product swap, completion of LNG projects, and construction of gas export pipelines.
Iran’s state-owned Petropars Co. in 2019 became sole developer of South Pars Phase 11 following the withdrawal of China National Petroleum Corp. (CNPC). CNPC had been designated operator after TotalEnergies SE exited the project in August 2018 in response to the reimposition of US sanction on the country.
The MOU was signed as part of a state visit by Russian Pres. Vladimir Putin to Iran, during which he met with Iranian Pres. Ebrahim Raisi and supreme leader Ayatollah Ali Khamenei. NIOC chief executive officer Mohsen Khojastehmehr described the MOU as one of the biggest foreign direct investment deals in the history of Iran's oil and gas industry.
Iran and Russia have been in crude oil price competition as they compete for market share in China while under sanctions from other countries.