Iran, Norway sign oil exploration deal

TEHRAN (AFP) –
Iran and Norwegian firm Norsk Hydro have signed a deal for exploration of the major onshore oil block of Khoramabad in western Iran.

The initial investment for the exploration amounts to 49.5 million dollars and can be increased up to 107.5 million dollars in case of additional costs, state television said.

The contract was signed in Tehran between the National Iranian Oil Companys exploration department and Hydro Zagros, the Iranian unit of Norwegian oil and gas firm Norsk Hydro.

The contract is based on a joint package of exploration-development, under which the block will be awarded to the contractors if they find profitable hydrocarbon reserves.

AFP