Iran and Russia signed a deal on March 14 to develop two oil fields in Iran, according to Iranian state TV.

The National Iranian Oil Co. signed a deal with Russia’s Zarubezhneft to develop the fields, according to SHANA, the news site of the Iranian oil ministry.

“This is a very important point. This is the first time that we are signing a deal to develop oil fields with a prominent Russian company,” Iranian oil minister Bijan Zanganeh said at the signing ceremony.

He added, “We hope that it won’t be the last deal. It was a difficult negotiation and I say congratulations to both parties.”

The Aban and Paydar-e Gharb fields are both in western Iran and jointly owned by Iran and Iraq, according to SHANA. Their combined oil output is currently 36,000 barrels per day (bbl/d).

The 10-year agreement is intended to boost the production of the fields to 48,000 bbl/d. The fields are expected to produce 67 million barrels of oil during the ten years, SHANA reported.

Zarubezhneft has an 80% share in the deal and its Iranian partner, Dana Energy, the remaining 20%.

The cost of developing the fields is estimated at $674 million, with an additional $68 million in indirect costs, according to SHANA.

Zanganeh said Iran was currently in the middle of negotiations with other Russian energy companies including Gazprom, Lukoil and Rosneft.