Russian oil and natural gas company Tatneft said it hasn't signed agreements or contracts related to work in the Iranian oil and gas sector.
The Iranian Oil Ministry's Petroenergy Information Network, known by its Persian initials SHANA, reported Tatneft signed a memorandum of understanding to develop Iran's Zagheh oil field. The report noted this would increase production there from 7,000 barrels per day to 55,000 bpd.
Iranian Oil Minister Rostam Qasemi said both sides would sign off on a formal deal before March, the end of the Iranian calendar year.
Tatneft, in a statement Monday, denied it made any deal with the Iranians.
"In connection with certain reports in the media about Tatneft signing a contract with respect to certain oil fields in Iran, the press-service of JSC Tatneft informs that Tatneft Group have not entered into any agreements, contracts and have not accepted any other undertakings relating to oil and gas projects in Iran," the statement read.
Iran is facing increased economic pressure in response to concerns about the true nature of the country's nuclear program.
SHANA noted that Iran was set to finance drilling operations at the Zagheh oil field through its own banks.