Russia to build oil rigs for Iran in Persian Gulf

A Russian ship-building company has signed a contract with an Iranian firm to construct oil rigs for the Iranian side in the Persian Gulf, Press TV reported on Wednesday.

Russian shipyard Krasnye Barrikady will build the rigs and transfer the needed technology, Managing Director of Iranian shipbuilder ISOICO, Hamid Rezaian, said.

Under the agreement, the rigs will be built for the exploration and production of hydrocarbons in the Persian Gulf.

The agreement will also allow the Iranian company to take advantage of the Russian firm's facilities to produce certain equipment, Rezaian said.

The CEO of Krasnye Barrikady, Alexander Ilyichev, said that "we are ready to provide ISOICO with the necessary equipment thanks to financial and insurance support of the Russian government."

"The construction and cooperation cycle is planned not for one year, but for decades," Ilyichev was quoted as saying.

Iran was also interested in ordering new oil tankers for operation in the Caspian Sea, Ilyichev said.

According to the report, the deal was signed earlier this month in Tehran where representatives of 80 leading Russian companies showcased their products in the biggest foreign display of the kind ever held in Iran.

Last month, Rezaian said his company was looking to the lifting of Western sanctions to unveil a series of projects in partnership with major world shipbuilders, including those of South Korea, Italy, China, German and Turkmenistan. Endit