BAKU, Azerbaijan, February 22. The 19th session
of the Iran-Russia Joint Economic Commission (JEC) recently took
place in Tehran, marking a significant step in bilateral
cooperation. During the meeting, four memorandums of understanding
(MoUs) were signed across diverse sectors, with officials pledging
to accelerate efforts to transform these agreements into tangible
projects in the near future, Trend reports.
Hydrocarbon Sector as a Top Priority
One of the main areas of cooperation is the development and
utilization of Iran’s hydrocarbon reserves. Iran ranks second in
the world with approximately 34 trillion cubic meters of gas
reserves. Currently, 22 gas fields are active in the country,
producing around 1.07 billion cubic meters of rich gas per day.
During the session on February 18, Iran’s Oil Minister Mohsen
Paknejad emphasized the importance of strengthening Iran-Russia
cooperation amid sensitive international conditions. He noted that
moving the agreements reached within the JEC into practical
implementation is a significant achievement.
Under the four contracts signed between Iranian and Russian
companies, seven Iranian oil fields are being developed, and some
are already producing crude oil.
Sanctions and Investment Challenges
Western sanctions and economic restrictions continue to hinder
Iran from realizing the full potential of its oil and gas sector.
Iran is working to create favorable mechanisms for foreign
investors, with Russian companies currently taking a more active
role. Seven Iranian oil fields are being operated by Russian firms,
and one jointly held field with Persian Gulf countries is expected
to begin development soon.
Currently, around 6% of Iran’s total crude oil production is
managed by Russian companies, with plans to increase this share to
12%.
Gas Imports on the Agenda
Iran has stated that negotiations on gas imports from Russia are
mostly finalized, with two main issues, price and payment
mechanisms, still pending and expected to be resolved soon. On June
26, 2024, a document was signed between Majid Chegeni, the CEO of
the National Iranian Gas Company, and Alexei Miller, Executive
Director of the Russian Gazprom Company, on the transportation of
Russian gas to Iran.
According to the document, if a final agreement is reached, the
first phase will allow the import of 55 billion cubic meters of gas
annually, with a potential additional 55 billion cubic meters in
the next phase.
Iran plans these imports primarily to secure a stable supply to
the northern regions, as the country’s main gas reserves are
located in the south and in Gulf waters, creating significant
technical losses during transport. In this context, Russian gas
imports are considered a more economical and technically efficient
alternative.
