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Unit International, Zarubezhneft sign US$7bn drilling agreement in Iran

Turkish energy company Unit International has signed a US$7bn agreement with Russian oil group Zarubezhneft and Ghadir Investment Holding to drill in three oil fields and a gas field in Iran. The amount of oil and gas to be received by each party was not disclosed.



The oil fields are estimated to hold 10 Gbl of oil reserves and to produce 100,000 bbl/d, while the gas field should have a production capacity of 75 bcm/year, i.e. 1.5 times the Turkish gas imports (50 bcm on average).



In July 2017, a consortium led by Total signed a contract with the Iranian national oil group, National Iranian Oil Company (NIOC), for the development of the phase 11 of the Iranian South Pars gas field (SP11), the largest gas field in the world. The whole project is expected to cost US$5bn and SP11 is expected to have a production capacity of 2 bcf/d (over 57 mcm/d or 400,000 boe/d) as of 2021.