Total inks Landmark Gas Deal with Iran’s NIOC Frances Total signed a deal with Tehran on Monday to develop phase 11 of Irans South Pars, the worlds largest gas field, marking the first major Western energy investment in the Islamic Republic since the lifting of sanctions against it...
France's Total signed a deal with Tehran on Monday to develop phase 11 of Iran's South Pars, the world's largest gas field, marking the first major Western energy investment in the Islamic Republic since the lifting of sanctions against it.
The strategic deal was signed between NIOC and a consortium comprising France's Total, China's CNPC International and Petropars Company from Iran.
Total will be the operator with a 50.1 percent stake, alongside Chinese state-owned oil and gas company CNPC with 30 percent, and National Iranian Oil Co subsidiary Petropars with 19.9 percent, Iran’s SHANA news agency reported.
During 20 years of gas extraction under the contract, an estimated volume of 335 billion cubic meters of rich, sour natural gas will be produced from the phase with 290 million barrels of gas condensate, 14 million tons of liquefied petroleum gas (LPG), 12 million tons of ethane and 2 million tons of sulfur .
The project will cost up to $5 billion and production is expected to start within 40 months.
“This is a major agreement for Total, which officially marks our return to Iran to open a new page in the history of our partnership with the country,” Total Chief Executive Patrick Pouyanne said.