Iran's Tasdid Offshore Development Company (TODC) has signed a contract worth $1 billion with Russia’s Krasnye Barrikady and to build five offshore drilling rigs for oil and gas exploration in the Gulf, a report said.

The deal aims to construct the drilling rigs over a two-year period in the port city of Khorramshahr, TODC managing director Ehsanollah Mousavi was quoted as saying in the Iran Daily report, which cited Press TV.

The project will be financed jointly by Russia and Iran, the report said.

"According to the timetable, domestic share in the construction of the first drilling rig will be 58 per cent. This will gradually rise during the implementation of the project as technology transfer into the country takes place," Mousavi said.