TEHRAN, Nov. 2 (Mehr News Agency) - Iran's Petroleum Engineering and Development Company (PEDCO) and Russia's Gazprom signed a memorandum of understanding for development of Azar oilfield, west of Iran.

Based on the inked MOU, which was approved by National Iranian Oil Company, the Russian firm has to propose its plan of action in three months, SHANA news agency reported on Monday.

Previously, NIOC was negotiating with Iran's Oil Industries Engineering and Construction Company (OIEC) for the development of Azar oilfield as a result of Statoilhydro Company's waver.

Norway's Norsk Hydro and Lukoil worked together on an exploration contract for the Anaran block's Azar oilfield located in Iran's southwestern province of Ilam, and discovered oil there in 2005. The companies later said the field holds 2 billion barrels of oil.

Norway's Norsk Hydro held 75 percent of the exploration license, while Lukoil held 25 percent.

StatoilHydro ASA, a Norwegian energy company, was formed by the 2007 merger of Statoil with the oil and gas division of Norsk Hydro. The company changed its name to Statoil ASA as of November 1, 2009. Statoil ASA is the biggest offshore oil and gas company in the world.

The Azar field lies in Ilam province in western Iran and holds 400 million barrels of oil. Based on the reports the field could produce as much as 50,000-65,000 barrels of oil per day for 25 years.

... Payvand News - 11/02/09 ... --