Iran completes first oil-for-goods supply to Russia

Under the agreement, Russia would buy 100,000 barrels a day of Iranian oil in exchange for Russian equipment and goods.

Russia’s Energy Minister Alexander Novak says the first Iranian oil supply to Russia under the oil-for-assets program has been completed and the two sides could extend the deal for five years when it runs out at the end of the year.

The arrangement dates back to 2014 under which Russia would initially buy 100,000 barrels a day of Iranian oil in exchange for Russian equipment and goods.

 "The agreement is effective; it has been extended for the year, but in general, we think it should be extended for five years" Novak was quoted by RIA news agency as saying.

Russia’s Energy Minister Alexander Novak

The first delivery was reportedly made in November 2017 and totaled 1 million tonnes.

Iran and Russia agreed to “strategic cooperation in the energy sector”, ranging from development of Iran’s oil and gas fields to collaboration on research during President Vladimir Putin’s visit to Tehran last November.

At the time, the two sides signed six provisional agreements to collaborate on "strategic" energy deals worth up to $30 billion.

Presidential aide Yuri Ushakov said earlier this month that Russian investment in developing Iran’s oil and gas fields could total more than $50 billion.

Last month, Iran awarded its second post-sanctions oil contract to Zarubezhneft to re-develop Aban and West Paydar oil fields in the country’s west.

Iran’s Minister of Petroleum Bijan Zangeneh said the agreement was the first oil field development deal awarded to a Russian company and also the first oil deal sealed through the new format of Iran’s oil and gas contracts.

Novak has said more than 10 different Iranian fields had been presented to Gazprom, Rosneft, Gazprom Neft, Zarubezhneft, Tatneft and Lukoil for development.