Croatia's state oil and natural gas company, INA, has begun oil exploration activities in Iran, Iran's English-language satellite channel Press TV reported.
"The Croatian firm started work in the Moghan-2 Block on June 21," said Hossein Roshandel, director of exploration affairs for the National Iranian Oil Company, according to Press TV.
Roshandel added that INA signed a deal with the NIOC on April 9 to conduct exploration activities in the 3,230-square kilometer area, Press TV reported.
The INA project, which will cost an estimated $142-million, aims to discover new hydrocarbon reserves in the block, Press TV said.
INA will drill an exploration well and appraise the seismological data of the block within four to five years, and if a commercial discovery is made, will have authority over exploration and production activities there for 25 years, according to Press TV.
The Moghan field is located in the northwestern province of Ardebil.