Over the weekend, Russia signed a deal with Iran to build $1 billion worth of offshore drilling rigs. Speaking to Sputnik, a Russian Iran expert and officials from the Russian and Iranian firms involved in the oil rigs deal commented on the prospects for Russian-Iranian economic cooperation, which in their words, is only just beginning.

On Saturday, Iranian and Russian media reported that Russia's Krasnye Barrikady Shipyard had signed a $1 billion deal with�Iran's Tasdid Offshore Development Company, part of�Sadid Industrial Group, to�build five offshore drilling rigs for�use in�the Persian Gulf.

Under the deal, the rigs' components, to�be built in�Russia's Astrakhan region, will be shipped to�the southwestern Iranian city of�Khorramshahr, where they will be assembled with�the help of�Russian experts before�being deployed in�the Gulf. Iranian specialists are expected to�participate in�the rigs' construction. The rigs are expected to�be built over�the next two years.

Commenting on�the growing cooperation between�the two countries, Russian Middle East specialist Vladimir Sazhin told Sputnik that since�the signing of�the Iranian nuclear deal in�July 2015, Tehran has quickly become a key player in�regional and even global politics, and an economic powerhouse to�boot.

Accordingly, Russia is interested in�the development of�a long-term partnership with�Tehran, and in�as short a timeframe as�possible. The ties, Sazhin said, must be made firm enough to�be able to�withstand any political fluctuations in�either country and in�the region as�a whole.

In early August, the presidents of�Russia, Iran and Azerbaijan met in�Baku. A great deal of�time was devoted to�cooperation in�the oil and gas sector, with�Vladimir Putin and Hasan Rouhani specifically commenting on�the 'special impetus' that had been given to�the development of�relations in�this sector.

As a result, several weeks later, Russia's Krasnye Barrikady Shipyard and Iran's Sadid Industrial Group signed a contract on�the creation of�offshore oil rigs. The contract has quickly grown to�become among�the largest economic projects agreed to�between Moscow and Tehran since�the signing of�the Iran nuclear deal and the lifting of�international sanctions against�Tehran last year.

Speaking to�Sputnik about�the deal, Krasnye Barrikady deputy general director Viktor Nikolaev pointed out�that the Russian shipyard has maintained warm relations with�the Sadid Group for�quite a long time before�the deal was actually reached. It was the Iranian company that sought out�Krasnye Barrikady, "when they were looking for�the opportunity to�build floating drilling rigs in�the Persian Gulf," the company official said. Having toured several other Russian shipyards, Sadid settled on�the Astrakhan company. "And their decision is easy to�explain," Nikolaev explained. "Our enterprise has built 12 floating drilling rigs, 8 of�them in�the Caspian Sea, for�Azerbaijan, 2 in�the Black Sea, on�Ukraine's request, and one for [Russia's] Lukoil, located in�the Caspian and successfully exploring and producing oil since�1995. Several years ago, we completed a floating drilling rig for�the Chinese company Yantai CIMC Raffles, operating in�the Caspian. In other words, we have a great deal of�experience."

Sadid Group officially approached Krasnye Barrikady in�December 2015, at�a Russian industrial exhibition in�Tehran. It was there, Nikolaev said, that the two companies signed a memorandum exploring the possibility of�building the rigs. Each platform is expected to�cost around $200 million, which, as�Nikolaev pointed out, was a fair price for�rigs of�this kind. But the Iranian side is attracted to�more than�just the cost of�the project. Speaking to�Sputnik, Sadid Industrial Group deputy director Amir Hossein Kaveh explained that the quality of�the platforms and the contractor used for�their assembly was also an important issue. "Our company is the largest industrial holding in�Iran.

We have been in�business for�over 50 years, and have carried out�a wide variety of�government projects. Our holding includes 10 of�the largest enterprises specializing in�pipes and sections, wind turbines and generators, pumps and new forms of�energy." Kaveh explained that after�receiving the state order to�build the new rigs, Tasdid, a member of�the Sadid Group, would consider companies from�several countries for�the construction and assembly of�the platforms. "In the course of�the search, the Krasnye Barrikady shipyard attracted special attention, given its rich and, most importantly, successful experience in�the industry � comprising over�a hundred years, and its specialization in�building vessels, jack-up drilling rigs, support blocks, and fixed drilling platforms."

Ultimately, Kaveh said that he expects the remaining nuances of�the deal to�be ironed out�within the next two months, after�which the two companies begin actual construction. Under the deal, Iran will receive not only the rigs themselves, but�the technologies associated with�their construction. Accordingly, the official suggested that the contract with�the drilling rigs was one more sign demonstrating the long-term strategic character of�Russian-Iranian cooperation. Broadly speaking, he noted, "one of�the long-term objectives as�far as�Iran's economy is concerned is to�see the largest industrial enterprises from�our country become engaged in�cooperation with�major Russian companies and enterprises, accompanied by�the conclusion of�a wide variety of�agreements and contracts. Russia, at�the highest political level, has also shown an interest in�this. And hopefully, this mutual interest will soon enter the phase of�practical implementation."

In the next 2-3 months, representatives from�dozens of�Iranian companies are expected to�make a working visit to�Russia. "Taking into�account the agreements which have already been reached by�the heads of�the Central Banks of�our countries on�providing financial support for�a number of�projects, we should see the implementation of�these projects in�the near�future," Kaveh concluded.
Last month, Iranian Ambassador to�Russia Mehdi Sanai pointed out�that Russia and Iran have already inked contracts on�economic cooperation worth a total of $40 billion. This, according to�the ambassador, includes "six new reactors at�the Beshehr plant," (with the contracts already signed and funds allocated for two of�them).

"In addition, Russia will be building four thermal power plants in�Iran, and upgrading existing ones, and an agreement has been reached on�railways. Other agreements cover a wide range of�areas, including industry, mining, aerospace, heavy and light automotive, aeronautics, oil and gas, petrochemicals, agriculture, etc."

By Sputnik