Russian shipbuilder Krasnye Barrikady has been awarded a near-$1 billion contract by Iran to build five offshore drilling rigs for use on Iran's part of the Gulf shelf, a company official told Reuters.

The project, which was under discussion for almost two years, will be financed jointly by Russia and Iran, the official said.

Iran will soon make a 15 per cent advance payment on the $200 million price of the first rig, he said. - Reuters