Iran signs agreement with British consortium to develop oil

TEHRAN, Iran — Iranian state TV is reporting that Tehran has signed an agreement with a British consortium to develop an oil field in the country’s south.

The agreement is the first between Iran and a key Western ally of the United States since Washington last week announced it will pull out of the landmark 2015 nuclear deal between Iran and Western powers.

Managing Director of Pergas International Consortium Colin Rowley, and Bijan Alipour, managing director of National Iranian South Oil Co., signed a preliminary deed on the partnership in the presence of British Ambassador Rob Macaire in Tehran on Wednesday night.

The project, if the agreement turns into a contract, will require more than $1 billion to produce 200,000 barrels of crude oil per day during the next decade in the 55-year old Karanj oil filed.

The oil filed is located in the country’s oil-rich province and currently produces 120,000 barrels of crude per day.