Russian Shipbuilder Signs $1 bln Oil Rigs Contract with Iran
Russian shipbuilder Krasnye Barrikady and Iran's Tasdid Offshore Development Company (TODC) have signed a deal worth $1 billion to build five offshore drilling rigs for oil and gas exploration in the Persian Gulf, reports Press TV.
According to Krasnye Barrikady Shipyard CEO Aleksandr Ilichev cited by the Iranian IRNA news agency, the Russian shipyard could carry out feasibility study for the project. The company has extensive expertise in the area accumulated after implementation of similar projects in other Caspian states, he added.
The deal signed with TODC envisages the construction of each drilling rig over two years in the port city of Khorramshahr, TODC Managing Director Ehsanollah Mousavi said.
The project will be jointly financed by Russia and Iran, and put the Islamic Republic among the countries capable of building drilling rigs.
“According to the timetable, domestic share in the construction of the first drilling rig will be 58%. This share will gradually rise during the execution of the project with technology transfer into the country,” Mousavi said.
“The project financing will be done by the Russian company. The return of investment will come from the leasing of the rigs to the country’s oil and gas projects, with the investment and profits planned to return in five years," he said.
Krasnye Barrikady officials have already said Iran will make a 15 percent down payment on the $200 million price of the first rig.
Krasnye Barrikady was established in 1886 as a shipyard but has expanded its repair and maintenance operations to production of structures and equipment for oil and gas industry, tankers and various types of vessels.
Russia's Gazprom and Agip KCO, a subsidiary of Italian energy firm Eni S.p.A., are among the clients of Krasnye Barrikady.