According to Iran’s oil ministry, a contract has been signed between France’s Total and Iran for development of the South Pars Gas Field on Monday.
An unnamed official from the Iran’s oil ministry said that the international contract to develop the phase 11 of South Pars Gas Field in the framework of IPC (Iranian Petroleum Contract), has been signed on Monday 03 July, during the ceremony in Tehran with the presence of Iranian Oil Minister Bijan Namdar Zanganeh and senior officials from France’s Total, China’s CNPC and Iran’s Petropars.
Total, a major international oil and gas company. Also, a world-class natural gas operator and a worldwide leader in solar energy, signed a preliminary agreement last year which worth 4.8 billion dollars for development of Phase 11 of the mega gas project in cooperation with National Petroleum Corp of China and Iran state-owned Petropars Company.
According to AFP, The Total firm intended to sign the contract in early 2017. However, in February, Patrick Pouyanne, Chief Executive, said that they have decided to wait for the US president Donald Trump’s administration’s decision on International sanctions against Iran.
Total plans to complete the Phase 11 project in three years and extract natural gas from the field for 20 years, Asadollah Qarekhani, the rapporteur of Majlis Energy Commission, said.
Two phases of the Phase 11 project
As announced on Total’s website, the Phase 11 project will be developed in two phases. The first phase will consist of 30 wells and 2 well head platforms connected to existing onshore treatment facilities by two subsea pipelines and will cost around $2 billion equivalent in total.
In the next stage, the second investment phase will be launched as soon as it’s needed by the reservoir conditions. The second phase will be involved in the construction of offshore compression facilities.
The project will be run by Total with a 50.1% interest alongside Petropars (19.9%) and the CNPC (30%). The expectation of gas production from Phase 11 project, is around 50 million cubic meters per day.
Since the South Pars project has opened a vast market, is worth to take the risk at $1 billion in the first stage, Pouyanne pointed.
South Pars Gas Field (the North dome in Qatari side) is the world’s largest gas field which is located on the joint border line between Iran and Qatar in the Persian Gulf. Petropars, as the first and greatest Iranian Operator in charge of development of different phases of South Pars Gas Field, has so far developed 11 blocks out of 28 blocks of this field in the form of 5 projects (for the production of some 12 trillion cubic feet per day of gas), according to the Petropars website.
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Source: Financial Tribune