Iran to finalize deal with Total within two months: Zanganeh

February 21, 2017

TEHRAN - Iranian oil minister Bijan Namdar Zanganeh told Mehr news agency that the deal with Total will be finalized based on Iran’s new model of oil contract, known as IPC, at most within two months.

The official had previously said that the two sides are still pursuing the contract but noted that recent comments from the chief executive of the French company is an indication that they are awaiting feedback from the United States.

"To my knowledge, the policy of the European Union is not following that of the United States so we will take the necessary steps to go forward with the contract. But we also have a complaint as to why these things are being said." Zanganeh told Mehr.

According to a Reuters report, Total plans to make a final investment decision on a $2 billion (1.61 billion pound) gas project in Iran by the summer, but the decision hinges on the renewal of U.S. sanctions waivers, Chief Executive Patrick Pouyanne said earlier this month.

Total was the first Western energy company to sign a major deal with Tehran since the lifting of international sanctions against Iran. Its project aims to develop South Pars 11, which is part of the world's largest gas field.