State-run Iranian groups signed contracts valued at $1.3 billion to develop the Tusan, Alfa and Band-e-Karkheh oil fields, the Oil Ministry’s news website Shana reported.

Petroleum Engineering and Development Co., an affiliate of the National Iranian Oil Co., agreed yesterday with a state- owned investment company to develop the Band-e-Karkheh field, which is estimated to hold 4 billion barrels of crude, according to the report.

Iranian Offshore Oil Co. signed a contract for Tusan, estimated to hold 400 million barrels of in-place crude reserves, and Alfa, which has a capacity to produce as much as to 10,000 barrels a day of crude, Shana reported.

To contact the reporter on this story: Yeganeh Salehi in Tehran via Dubai at bstanley5@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net