Iran has awarded a U.S. energy firm a contract to develop natural gas reserves.

Iranian state television said Halliburton was awarded a major contract along with an Iranian firm, Oriental Kish. The television quoted an Iranian energy official as saying that Halliburton and Oriental were awarded projects to drill for gas in the giant South Pars project.

Akbar Toran, managing director of Pars Oil and Gas, said Halliburton and Oriental Kish were awarded the development contracts for Phase 9 and Phase 10 of South Pars. The deal was estimated at $310 million, Middle East Newsline reported.

A Pars Oil executive quoted by the Iranian daily Shargh said Halliburton did not formally participate in the tender. Instead, Halliburton, restricted by U.S. sanctions on Teheran, operated through Oriental Kish. In 1996, the United States banned companies from investing more than $40 million in Iran's energy sector.