Iran will get 24 J-10 fighters from China in exchange for signing a contract to allow Beijing to utilize its largest oilfield over the next 20 years, according to a Taiwanese media report.

The jets, nicknamed “Vigorous Dragon” in the West, will be produced by Chengdu Aircraft Industry Group in China, according to the electronic version of the China Times. The Iranian Air Force will use them to equip its two fighter groups.

The cost of a single J-10 is estimated at $40 million, making the value of the deal around $1 billion. But Iran will not pay a dollar for the transaction. Instead, they will grant Beijing a 20-year exploitation right to the Azadegan oilfield.

With a range of 2,940 kilometers, the fighters are capable of defending Iran's entire airspace and that of the Persian Gulf.

Even though the 24 jets, which will be delivered to Iran by 2020, will increase Iran’s air force capabilities in defending the country’s key facilities and even pose a threat to Israel, they will not make a major difference to the strategic situation in the Middle East, according to Chinese military analysts.