Iranian Petroleum Ministry on Saturday awarded a deal worth 1.4 billion U.S. dollars to an Iranian energy enterprise to develop two oilfields located at southeast of the country, state TV reported.

The deal was signed between Iranian Petroleum Ministry and MAPNA Group which operates in the area of construction and development of thermal power plants under EPC scheme, independent power plants (IPP), oil and gas as well as rail traction projects.

According to the contract, the MAPNA Group will improve recovery rate and increase production at the two Iranian Parsi and Paranj oilfields, located in the province of Khuzestan and near the border with Iraq.

The two oilfields hold around 12 billion barrels of oil together.

Ahmad Mohammadi, the chief of National Iranian South Oil Company (NISOC) said that the MAPNA Group is expected to increase production at the two fields from the current 52,000 bpd per day to 85,000 bpd at the end of project.