TEHRAN – Iran High Economic Council gave the final go-ahead on exploration and development operations at two oil blocks, 6 and 29, of the Caspian Sea, Mehr News Agency reported on Friday.

The permit issued by the council, allows the Oil Ministry to run a bid in the form of buyback and 20% of this $476m venture will be paid to the selected contractor to kick off the work. As stipulated earlier by Majlis (Iranian parliament), the contract may be terminated if the fields are deemed commercially nonviable.

Exploration operations are usually not too cost-effective and the contractor(s) in charge of this stage is normally awarded with development projects if the job proves to be economically feasible.

Semi-submersible Iran-Alborz rig is to be used in the operations.