Turkey's Unit International said on August 16 that $7bn would be invested by itself, Iran's Ghadir Investment and Russia's Zarubezhneft in drilling for oil and natural gas in Iran's southern regions.

Private company Unit International, public joint stock company Ghadir Investment, which is affiliated to the Iranian Armed Forces Social Security Organisation,  and Russia's state-owned Zarubezhneft are to be equal partners in what for Iran is a rare type of agreement. The three-way partnership, which will also look at developing hydrocarbon fields outside of Iran, was first announced on August 9.

Ghadir - the largest Tehran Stock Exchange-listed investment company with seven holdings and 140 subsidiaries operating in sectors including oil, gas, petrochemicals and power - and its two foreign partners have been looking to develop the gas and oil-rich southern regions of Iran for several months, but there were stumbling blocks to their progress such as prolonged discussions on what the percentage ownerships of drilling rights would be.

The announced investment in exploration is to focus on three oil fields including Azadegan and part of the South Pars Persian Gulf offshore field, which largely provides gas. Total oil reserves at the three fields stand at 10bn barrels, and it is anticipated that the fields will produce a combined 100,000 b/d. Natural gas extraction would likely be tied to a forecast production capacity of 75bn cubic metres per year, Unit International said.

The deal has been formulated with broad terms that will also allow for extensions to drill at other locations across Iran. The extensions could conceivably expand the initial deal by billions of dollars.

Ghadir has shown interest in several projects developed by the National Iranian Oil Company (NIOC), carrying out studies on the third phase of the Darkhovin, Sepehr and Jofeir oil fields, as well as the Kish gas field, according to Platts energy news agency.

Zarubezhneft has signed several agreements with NIOC in the past two years, including for the development of two onshore oil fields, Aban and West Paydar.