Russia's state energy company Gazprom has confirmed that it has reached an agreement which will see it cooperate in the development of Iranian natural gas and oil reserves.

Under the new deal, which was signed by the company and Iran's oil minister Gholam Hossein Nozari, greater investment will be put into projects in both the Azadegan region as well as fields located around the Caspian Sea.

In addition, the two sides will work together towards the implementation of a number of proposed new sites as Iranian president Mahmoud Ahamadinejad looks to boost production capabilities after a number of Western energy firms pulled out of the country due to governmental pressure on the back of concerns surrounding its nuclear programme.

Also at Tehran meeting held to welcome a delegation from Gazprom, Mr Hossein Nozari revealed that a new oil field has been discovered in the Khuzestan region, in the south-west of the country, with initial estimates pointing to 1.1 billion barrels of crude oil, of which as many as 233 million barrels are likely to be recoverable.