According to Iran Daily, the $40-billion memorandum between Iran and Russia is defined in several industry sectors. According to what has been announced so far, the Russians are going to develop the Kish and North Pars gas fields, increase the pressure of the South Pars field, develop 6 oil fields, complete LNG projects, swap gas and oil products, build gas export pipelines and carry out other scientific and technological cooperation with Iran, but several parts of this memorandum are of special importance for the development path of Iran’s oil industry.

In this regard, Hormoz Qalavand, Director of Oil and Gas Production Supervision of the National Iranian Oil Company, said: “The development of oil cooperation between Iran and Russia will lead to an increase in Iran's oil and gas production. At the same time, it will help advance some of the oil industry's plans, including increasing pressure in the South Pars joint field, which is one of the important concerns of Iran and Russia oil cooperation.”

Experts believe that Gazprom's presence in the south, in addition to the development and increase of the country's oil and gas production, is a strategic response from Russia to Europe, which is implementing strategic agreements with Qatar. Therefore, although Iran benefits from this cooperation, it is also important for Russia to convert this memorandum signed with Gazprom into a contract.

Details of the $40 billion deal with Gazprom

It is expected that with the finalization and implementation of this memorandum, nearly $25 billion of Russian capital will be allocated for the development of gas fields and the completion of LNG projects and the collection of associated petroleum gases, and $15 billion will be allocated for the development of 6 oil fields inlcudign Karanj, Azar, Changuleh, Abteymur and Mansouri. Previously, contracts were signed for cooperation with the Russians in fields such as West Paydar and Aban, whose value is said to be $4 billion. This $4 billion contract includes the development plan of seven Iranian oil fields and is now in the implementation phase.

However, regarding the $40 billion memorandum of understanding, which is unique in the history of Iran's oil industry, the Director of Oil and Gas Production Supervision of the National Iranian Oil Company explained: “The signing of the memorandum of understanding between the National Iranian Oil Company and the Russian Gazprom Company, worth about $40 billion, is a unique and is noteworthy. In addition to the importance of pressure enhancement in the South Pars field, it includes other issues such as the development of Kish and North Pars gas fields, the development of 6 oil fields, gas and product swaps, the completion of LNG projects, construction of gas export pipelines, and other scientific and technological cooperation. This interaction and cooperation with Russia's Gazprom, which is considered one of the most powerful companies in the world, can lead to further development of Iran's oil industry. This is a mutual cooperation and attractive for both parties.”

According to this official, some of the provisions of this memorandum will become a contract in the near future.

5.7 mbd Crude Oil Production Aimed

Currently, Iran's oil production capacity is about 4 million barrels per day. For years, the country's oil production capacity has not exceeded this figure because the increase in oil production capacity requires investment and development of oil fields. The NIOC official, pointing to the importance of attracting capital to advance the medium-term and long-term development goals of the oil industry, said: “Until 2030, with an investment of about $90 billion, the oil production capacity in the country will hit 5.7 million barrels per year and it is necessary to move forward in the investment path.”

The implementation of this memorandum will help to maintain the current gas production and increase gas production in the country.

Qalavand, while emphasizing the importance of each paragraph of the memorandum signed with the Russians, announced the production of more than 150 million cubic meters of gas with the development of Kish and North Pars fields as an effective step in the process of increasing gas production, and added: “Very important measures that have turned the issue of maintaining and increasing production into a vital issue is the discussion of increasing pressure in the South Pars field, which is carried out in the form of an investment worth approximately $20 billion.

Underlining the importance of increasing gas production in order to provide winter fuel and also to strengthen Iran's presence in international markets, Qalavand said: “In the winter of last year, for the first time, the maximum production from the joint field of South Pars reached 705 million cubic meters per day, and now with the cooperation of Russian companies, especially Gazprom and the use of their up-to-date technologies in this field, with God's grace and help, the path will be ready for maximum production.”