Russia eyeing Iranian gas reserves

MOSCOW, Sept. 2 (UPI) -- Russian gas giant Gazprom Neft has pushed for progress on several contracts in Iran to explore its gas fields as Western firms shun economic ties there.

Gazprom Neft plans to expand a service contract for the Iranian North Azagedan gas field to a development contract to share production of some 5.5 million tons of gas reserves, Russian daily Kommersant reported Tuesday.

Development officials at Gazprom Neft put the total estimated reserves at North Azagedan at 150 million tons. If contract talks are successful, it will mark the first foreign development contract for the Russian gas giant.

"In essence, it is the servicing contract. We bear the costs agreed on in advance and to be set off at the fixed yield. We are to agree on the yield and on the oil quantities that we will have for selling," Gazprom Neft Chief Alexander Dyukov said.

Dyukov said his firm could develop the Dudru, Kuh-e Rig and Shurum fields under similar contract negotiations.

The Gazprom move comes as Western energy majors Total, Shell and Repsol reconsidered their interests in the Islamic Republic.