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Russian Oil Producer Quits Iran Projects

Russian Oil Producer Quits Iran ProjectsRussian Oil Producer Quits Iran Projects

Russian state-owned oil producer Zarubezhneft has pulled out of projects in Iran because of looming US sanctions, two sources at the company told Reuters.
The National Iranian Oil Company signed a deal with Zarubezhneft in March to develop two oilfields, Aban and Paydar-e Gharb, in Iran.
The 10-year agreement was intended to boost the production of the fields to 48,000 barrels per day from current 36,000 bpd.
Zarubezhneft has an 80% share in the deal and its Iranian partner, Dana Energy, the remaining 20%. 
The cost of developing the fields was estimated at $742 million.
However, a source at the Moscow-headquartered company said imminent US sanctions against Iran meant it had pulled the plug on the projects. 
The company declined to comment.
The US is imposing new sanctions from Monday on Iran’s oil industry after Washington withdrew from a nuclear deal between Tehran and other global powers earlier this year.
“We would lose foreign currency revenue if we were hit by the sanctions,” the source said, adding that this would also have a negative impact on its partners in other projects.

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