Russian Tatarstan: Iran Seeking Experience To Develop Heavy Crude

The Russian republic of Tatarstan says Iran is seeking to utilize its experience in heavy oil production to develop the Zagheh heavy crude field, rather than developing the field jointly with Tatarstan's oil company OAO Tatneft (TATN.RS).

Sunday, Iran's Oil Ministry website Shana said state-owned Petroleum Engineering and Development Co. had signed a memorandum of understanding with Tatneft to help develop the Zagheh field. However, Tatneft immediately denied it had any involvement in the project.

Later, a statement on Tatarstan's official website said Tatneftekhiminvest-Holding--a local scientific center coordinating the activities of oil and gas chemical enterprises in Tatarstan--had signed a memorandum of understanding.

"The signed memorandum envisages the creation of a joint working group that will consider and search for practical ways to implement the reached agreements," the statement said.

-By Jacob Gronholt-Pedersen, Dow Jones Newswires; [phone], [e-mail]