AFP reported that the oil arm of Russian energy giant Gazprom and the National Iran Oil Company have signed a deal on the development of 2 oil fields in Iran.

As per report, Gazprom Neft and NIOC signed a MoU reflecting the companies’ intentions in the area of developing the Azar and Shangul oil fields in Iran. Gazprom Neft, the oil unit of Russian state controlled gas producer Gazprom will evaluate the project's technical and economic feasibility and then move on to preparing a full fledged contract.

Mr Alexander Dokov chairman of Gazprom Neft said that "We are interested in cooperation with NIOC and consider the agreement that has been reached with our Iranian colleagues to be promising."

Western governments have pressured energy firms to cut ties with Iran due to Tehran's controversial nuclear program but 2008 Gazprom signed an agreement with Iran to develop the country's rich oil and gas fields.

Russia has closer economic ties with Iran than any other major world power and is helping build Iran's first nuclear power plant in the southern city of Bushehr despite complaints from the West.

The US and the European Union fear that Tehran is seeking to build an atomic bomb under the guise of its civilian nuclear power program but Tehran denies the allegation.

(Sourced from AFP)