To Innovation - Breaking Politics, Economics, Crypto & IT News

learn more
Reporting from Watford, UK and LA, US since 1996
learn more

Iran expects to sign big gas deal in next two weeks

Iran and France’s Total SA expect to sign a contract to develop part of the world’s biggest natural gas field in the next few weeks. It would be the Persian Gulf country’s first investment by an international energy company since sanctions were eased last year.

20.Jun.17 11:29 PM
By Daria Zaytseva


Iran expects to sign big gas deal in next two weeks
Total and China National Petroleum Corp. signed a “heads of agreement” with National Iranian Oil Co. in November to develop phase 11 of the South Pars gas field, a deal that was valued then at $4.8 billion. CEO Patrick Pouyanne said on Tuesday the Euronews TV channel that in the next few weeks the company will sign a contract on a marine project.

NIOC Managing Director Ali Kardor told reporters that the text of the contract on phase 11 of the South Pars had been finalized and they thought the contract would be signed within a week or two. Iran also plans to hold a bidding round for rights to develop the Azadegan oil field in southwestern Iran in the next three to four months, he added.

Iran is the third-biggest oil producer in the Organization of Petroleum Exporting Countries and has the world’s biggest gas reserves. The country aims to attract companies such as Total, Royal Dutch Shell Plc and Russia’s Lukoil PJSC and Gazprom Neft PJSC to its oil and gas fields with new technology to increase energy production. Its oil production grew by 33 percent last year after sanctions related to its nuclear program were eased in January 2016.

In November the cost of the first part of the South Pars project amounted to $ 2 billion, with Total’s share at $1 billion. Paris-based Total was working on South Pars until sanctions forced the company to get out in 2009. Eni SpA of Italy also may return to an Iranian field where it once worked.

Back to the list

Related Information: