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Iran signs $740 million agreement on oil project

Russian Energy Minister Alexander Novak (R) and Iran's Minister of Petroleum Bijan Zangeneh during a meeting in Tehran in September 2014. (File photo by ISNA)
TEHRAN, Iran (AP) — Iran's state-run oil company has signed a $740 million agreement with a Russian-Iranian consortium to develop two oil fields near the Iraqi border.
Under the agreement signed Wednesday, there will be a 48,000-barrel daily production of crude for a 10-year span in oil fields in Aban and West Paidar in the southwest near the border with Iraq. Iran currently produces 36,000 barrels of crude in both fields.
The consortium includes the Russian state-controlled Zarubezhneft Oil Co. and the Iranian private Dana Energy Co.
This is the second energy contract with foreign companies following the landmark 2015 nuclear deal with world powers.
Last year Iran signed a $5 billion agreement with France's Total SA and a Chinese oil company to develop its massive offshore natural gas field.

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