Zarubezhneft and Dana Energy, a private Iranian company, will jointly develop the Aban and Paydar fields in Ilam province near the Iraqi border, to boost production from 36,000 to 48,000 barrels of oil per day.
The Russian company will put up 80 percent of the capital, while Dana Energy will cover the rest.
“Increasing the production from these two fields will bring some four billion dollars to Iran” over the coming years, Iran’s Oil Minister Bijan Namadar Zanganeh said at a signing ceremony in Tehran.
Iran and Russia have strengthened both their political and economic relations in recent years, with the warming prompted mostly by the war in Syria, where both countries are key allies to President Bashar al-Assad.
Kardor said energy giant Russia had “great experience” in exploring and developing oil fields.
National Iranian Oil Company head Ali Kardor said it was the country’s first such deal with a Russian firm.
“On the political front, relations with Russia are at the highest level, but in the economic sphere they have not yet reached” the same level, he said.
The deal comes amid heightened fears that Washington will withdraw from a historic 2015 deal to restrict Iran’s nuclear program in exchange for the easing of crippling sanctions.
That would further complicate the work of foreign companies wanting to work in Iran.
Wednesday’s was Tehran’s second deal with a foreign energy firm since the signing of the nuclear accord with world powers.