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The National Iranian Oil Company (NIOC) and the Dutch-British company Shell have agreed on the terms of paying off the giant’s outstanding debt of $2.3 billion to Iran, an Iranian oil official said.

Director of international affairs at National Iranian Oil Company, Mohsen Qamsari, has said that Iran will resume exporting oil to Shell in case the company pays back all of its outstanding debt after the removal of international sanctions against Tehran, Mehr news agency reported Jan. 4.

Earlier Iranian Deputy Minister of Economy Mohammad Khazaei said that the UK’s Exchequer had agreed to settle Shell’s debt to Iran as soon as the sanctions are lifted.

He noted that Iran’s entire debt to international monetary institutes is less than the amount that Shell owes to the country.

The Iranian crude oil has turned into one of the cheapest available as it experienced the greatest decline among all oils in market in the past week to hit about $28 per barrel.

By holding 157 billion barrels of recoverable crude oil reserves, Iran possesses the world's fourth largest oil reserves.

Iran’s current oil production is estimated to be around 2.8 million barrels per day of which about one million barrels are exported.

Iran expects international sanctions imposed by the West over its nuclear program to be lifted in early 2016.

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