Iran has started first crude oil drilling operations in the Caspian Sea, the oil ministry's official Shana Web site reported Tuesday.
The Iran-Alborz semi-floating drilling platform has begun formal drilling operations in block six of the Caspian Sea, Shana said, adding that drilling will take place at a depth of up to 700 meters.
Shana said the construction of two other platforms was under way. The Web site earlier reported that the facilities will cost about $250 million to build.
Iran's North Drilling Company, or NDC, and Hong Kong-registered China Oilfield Services Ltd. in early 2006 signed an oil-exploration agreement covering the management, repair and maintenance of the Alborz rig, Shana reported.
The three-year contract, valued at an estimated cost of $33 million, will enable Iran to move its exploration activities to the deep waters of the southern Caspian, Shana said.
According to initial estimates, the southern region of the Caspian Sea holds at least 32 billion barrels of oil, Shana said.
Talks are also under way with Brazil's state-run oil firm Petroleo Brasileiro S.A., Petrobras, to help the Islamic Republic undertake exploration of its deep offshore Caspian Sea waters. The talks are near finalization, an Iranian official told Shana.