TEHRAN, Jan 9: Iran and Italy’s Edison International signed on Wednesday a $107-million (73-million-euro) contract for exploration in Gulf waters, the student ISNA news agency reported.

The contract comes despite US pressure on European and Asian firms to cut down their business with Iran in order to step up pressure against the Islamic republic in the crisis over its nuclear programme.

It involves geological and seismic studies as well as drilling of up to two wells in Iran’s Dayer block. The project is set to be completed in four years and open to a one-year extension.

Dayer is one of the 17 oil blocks put out on an international tender in February 2007.

It is expected that contracts for the exploration of two other oil blocks will be signed by the winners of the tenders by the end of the current Iranian year on March 19.

The Iranian oil and gas industries, which are both in need of foreign investment, have been hit by the decision of most European banks to stop dealing with Iran as a result of the atomic standoff.

But over the last month Iran has trumpeted the closing of two major deals with Asia.

Iran on December 27 signed a six-billion-dollar (4.15-billion-euro) contract with Malaysia’s SKS for development of Golshan and Ferdos gas fields.

On December 9, Iran closed a two-billion-dollar (1.36-billion-euro) deal with China’s Sinopec to develop the Yadavaran oil field, another crucial deal for its energy industry.—AFP