LONDON French oil company ELF Aquitaine said on Monday it and Italy's ENI had signed a billion dollar deal to redevelop Iran's offshore Doroud oilfield. ELF said it would own a 55 percent share in the buy-back contract with ENI Subsidiary Agip taking 45 percent to carry out the work aimed at increasing Doroud's recoverable reserves by 900 million barrels to 1.5 billion.

ELF said the total cost of the projects was $998 million including capital expenditures of $540 million, financial charges and remuneration to the consortium. The contract provides for the two companies to be reimbursed and paid in the form of crude from the field over a period of ten years. The companies are expected to increase production from Doroud by reinjecting gas from the field.

The National Iranian Oil Company said in February it had decided to award the contract to ELF and ENI after offering it to international investors in 1995 as part of its first financial opening since the 1979 Islamic Revolution. Iran now has four contracts with international investment consortiums stemming from the 1995 tender and is negotiating terms for more deals from a second tender launched last year.