World's Energy

May 21, 2009 (UPI) - TEHRAN, Italian energy company Eni is expected to sign a $1.5 billion deal to develop a third phase of the Darkhovin oil field near the Iraqi border. Iran's Arvandan Oil and Gas Co., a division of National Iranian Oil Co., signed a $550 million deal with Eni in 2001 to develop the initial phase of the Darkhovin field. The first phase began operation in 2005, and second-phase development is under way. Eni announced it was interested in third-phase development with a $1.5 billion investment, submitting feasibility plans to their Iranian counterparts, Iran's Press TV boasts. Iran has pushed hard for foreign investments in its energy sector amid harsh Western-backed economic incentives. Several European countries have expressed reservations over dealings in the Iranian energy sector in part due to Iran's controversial nuclear program. Iran, however, sits on some of the largest natural resource reserves in the world, ranking third in terms of global oil reserves and second in terms of gas.