Iranian Deputy Oil Minister Noureddin Shahnazizadeh told a delegation in Moscow that his country has concluded initial studies for the $US2 billion pipeline, and would move forward with the contract phase soon.

"We have already completed the groundwork for the project and will soon announce an international tender," he said. "I invite international companies, including Russian companies, to participate in the project."

Iran has the ability to store around 1.5 MMbbl of oil at ports on the Caspian Sea for possible transport through the planned 1,550 km Neka-Jask pipeline, which is proposed to run from the Caspian Iranian port of Neka to Jask on the Gulf of Oman, linking several regional suppliers, including Russia and Turkmenistan. The project is part of a five-year plan by Iran intended for launch in 2010.

National Iranian Oil Co spokesman Bahan Sorooshi, said part of the five-year development plan may include Gazprom and Tatneft, the sixth largest oil and gas company in Russia, as potential investors as Tehran looks to Moscow as an energy partner.

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Iran is the second-largest oil producer in OPEC, and holds the third-largest reserves of crude oil in the world.