Tatneft, one of Russia's top ten crude oil producers, and the National Iranian Oil Company (NIOC) plan to sign a $700 million contract on Sunday on the extraction of heavy oil at the Zagheh oilfield in south Iran, the Iranian Press TV channel reported.
Under the contract, the Zagheh oilfield in the Bushehr province will produce 7,000 barrels per day of heavy crude in the first phase of its development. The output will be increased to 55,000 bpd in the second phase, Press TV said.
Tatneft has so far been unavailable for comment to RIA Novosti.
Iran is the second largest oil exporter among the OPEC countries and holds the fourth place in the world by oil output. Oil exports account for about 80 percent of Iran's revenues.
