Russia investing $64 billion in Iran’s oil and gas

Russia is getting ready to invest US$50 billion in Iran’s oil and gas industry.

A Russian oil company has signed an agreement with Iran worth US$4 billion, and that deal “will be implemented soon.”

Russian energy giants Rosneft and Gazprom have also started talks with the oil ministry of Iran to potentially sign deals worth up to US$10 billion, the Iranian adviser said, while a Russian government official confirmed to FT Russia’s US$50-billion investment plans.

Iran exported 2.13 million barrels per day of oil in 2017, 62% went to Asia and 38% to Europe.

China and India have been top buyers of Iran’s oil in Asia. South Korea and Japan are also among Asian buyers of Iran’s oil, joined by European customers like Turkey, Italy, Britain, Hungary and the Netherlands.

Iran traded oil and condensate for around $52 a barrel in 2017.

The National Iranian Oil Company (NIOC) also exported 17 million tons of fuel oil and 2 million tons of gasoil to neighboring countries in the same year. Iran’s 2016 oil and condensate revenue reached $41 billion.

Iran’s oil exports reached 2.819 million barrels per day in 2017, up from 1.595 million barrels per day in 2015. The country’s oil revenues also grew from $27.308 trillion in 2015 to $41.123 trillion in 2017.

Iran’s crude oil exports reached a record 2.617 million barrels per day in April.

Iran is now under US sanctions.