MercoPress. South Atlantic News Agency

Repsol-YPF after oil and gas in Iran.

Spanish-Argentine consortium Repsol-YPF signed an agreement with the Iranian Oil Company for the exploration of hydrocarbons in two blocks in the south of the Persian Gulf, reported this week the company in Madrid.

The contract has an initial extension of two and a half years and contemplates an investment commitment equivalent to 27 million US dollars. The agreement can be extended several times based on results.

Repsol-YPF will be involved in geological and geophysical surveys plus drilling two test exploratory wells in an area of approximately 14,600 square kilometres.

"This is part of Repsol-YPF policy of expanding activities in basins of great oil potential and reinforce our presence in the Middle East", said the release.

Repsol-YPF is also present in Dubai and Saudi Arabia and recently signed an agreement with Shell Oil for the exploitation of natural gas in Iran.