Russia and Iran have signed a $1 bln USD deal on the construction of marine drilling rigs in the Persian Gulf, TASS reports.

The agreement signed between the Iranian Tasdid company and Russian Red Barricades shipyard stipulates construction of five marine drilling rigs for the purpose of oil and gas prospecting and extraction in the Persian Gulf region.

The Russian company has committed itself to ensuring 85 percent of the agreement cost.  During the following two years, the drilling rigs must be constructed in the Khorramshahr port city.