No action yet by CNPC for developing South Pars phase 11: Zanganeh

February 16, 2019

TEHRAN – Iranian Oil Minister Bijan Namdar Zanganeh said although 81 percent of the phase 11 project of developing South Pars gas filed has been officially handed over to CNPC, the Chinese haven’t still done any work on the project.

“We have been negotiating with the Chinese side to determine what measures they are going to take.” IRNA quoted Zanganeh as saying on Saturday.

The official further noted that in his upcoming visit to China along with the parliament speaker Ali Larijani, one of the main subjects that will be addressed is going to be the South Pars project.

Total signed a contract in 2017 to develop phase 11 of South Pars field with an initial investment of $1 billion, marking the first major Western energy investment in the country after sanctions were lifted in 2016.

The company was pressured to leave Iran after the United States threatened to impose sanctions on companies that do business in the country.

The French company said in August it had told Iranian authorities it would withdraw from the South Pars gas project after it failed to obtain a waiver from U.S. sanctions against Iran.

In May, industry sources said CNPC was ready to take over Total’s stake in the project.

The offshore South Pars field holds the world’s largest natural gas reserves ever found in one place.

EF/MA

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