Iran, Russia ink $1 billion oil rig deal

Russian shipbuilder Krasnye Barrikady and an Iranian company have signed a deal worth $1 billion to build five offshore drilling rigs for oil and gas exploration in the Persian Gulf.

The deal signed with Iran’s Tasdid Offshore Development Company (TODC) on Sunday envisages the construction of each drilling rig over two years in the port city of Khorramshahr, TODC Managing Director Ehsanollah Mousavi said.

The project will be jointly financed by Russia and Iran, and put the Islamic Republic among the countries capable of building drilling rigs.

“According to the timetable, domestic share in the construction of the first drilling rig will be 58%. This share will gradually rise during the execution of the project with technology transfer into the country,” Mousavi said.

“The project financing will be done by the Russian company. The return of investment will come from the leasing of the rigs to the country’s oil and gas projects, with the investment and profits planned to return in five years," he said. 

Krasnye Barrikady officials have already said Iran will make a 15 percent down payment on the $200 million price of the first rig.

Mousavi signed the agreement with Krasnye Barrikady CEO Alexander Ilyichev, lending a fresh momentum to Iran’s oil and gas development, including its massive South Pars field.

SS