South Pars deal with Total, CNPC to be signed today

July 3, 2017

TEHRAN - Iran will sign a deal today with France’s Total and China’s state-owned National Petroleum Corporation (CNPC) for development of phase 11 of its South Pars gas field.

Iranian Oil Minister Bijan Namdar Zanganeh and directors from National Iranian Oil Company (NIOC), Total, CNPC, and Iran's Petropars Group and Pars Oil & Gas Company (POGC) are expected to attend the signing ceremony, Tasnim news agency reported.

The deal was expected to be signed weeks ago but apparently the process of finalizing the details took more time than expected.

Earlier in November, Total and CNPC had signed a heads of agreement with NIOC to develop the field.

Total holds a 50.1 interest in the South Pars project with CNPC owning 30 percent and Iran's Petropars 19.9 percent.

The offshore field was first developed in the 1990s and Total was one of the biggest investors in Iran until the international sanctions were imposed in 2006 over Iran’s nuclear program.

Total has decided to return and develop phase 11 of the South Pars project, which will cost up to $5 billion.

EF/MA

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