TEHRAN Iran signed an exploration deal for Caspian Sea oil with Sweden yesterday, said a report carried by Iran's official news agency.

Iran signed the $226 million contract with Sweden's GCA Consultants, who will build a submersible exploration platform expected to be up and running off the town of Neka, Mazandaran Province, in just under three years.

The Iranian side to sign the contract was Iran's Marin Industries Company.

According to the report carried by Iranian news agencies, Iran is to provide some 50% of the machinery and technology of the project.

The project is said to be completed in 32 months and would bring 2,000 job opportunities. The platform is to be built in the town of Neka and to be dug into the sea's waters to the depth of 1,000 meters.

Iranian Owj Pajouhesh San'at Company is advisor to the project.

The Oil Minister Bijan Namdar Zangeneh told the reporters after the signing ceremony that Tehran was unwilling to wait for the dispute over the Caspian's legal status to be settled before beginning its exploration work.

With other nations already looking to exploit the sea's vast oil and gas reserves, Zangeneh said, "We don't see why we shouldn't begin." He said the area could yield Iran some 20 billion barrels of oil.

GCA Marketing Director Robert Ludwigson said the platform would be completed in 32 months.

According to some estimates, the Caspian could contain 200 billion barrels of oil and 600 trillion cubic feet (18 trillion cubic meters) of gas reserves.