Russian Firm Wins $1b Iran Drilling Contract

Russian Firm Wins $1b Iran Drilling ContractRussian Firm Wins $1b Iran Drilling Contract

Russian shipbuilder Krasnye Barrikady has been awarded a nearly $1 billion contract by Iran to build five offshore drilling rigs for use in Iran's segment of the Persian Gulf shelf, a company official told Reuters. The project, which was under discussion for almost two years, will be financed jointly by Russia and Iran, the official said. Iran will soon make a 15% advance payment on the $200 million price of the first rig, he said. Iran, the third-largest producer of the Organization of Petroleum Exporting Countries, is planning to ramp up crude production with the help of international contractors as the country is gradually winning back the market share it lost to rival crude producers when sanctions against it were in place. Russia and Iran have set sights on long-term cooperation in a broad range of areas, including power plants, exploration and production projects and swap agreements for petroleum products.