Iran's national oil company (NIOC) has discovered a gas field which is estimated to hold 19trn cubic feet (tcf) of natural gas, 13tcf of which is recoverable, according to a report by state news agency SHANA.
The field is called Eram, and is located south of Fars Province, 200km south of Shiraz, and stretches around 50km with a width of 5km.
NIOC's exploration department said the discovery followed years of exploration in the Eram District of Fars Province.
CNN reported that the reserve could produce 400mn barrels of gas condensate, which would be worth $40bn.
"We have the potential to identify more undiscovered oil and gas reserves [in the country] by using geophysical exploration techniques and discovery drilling and will definitely add to Iran's national wealth," NIOC Deputy Managing Director Reza Dehghan said, as quoted by CNN.
The announcement follows news that an Iranian oil tanker, Sabiti, was damaged off the coast of Saudi Arabia on Friday in a suspected missile strike.