Iran Says to Sign IPC Gas Deal with Total, CNPC Monday

TEHRAN (Tasnim) – An Iranian oil ministry official said the country plans to sign a new contract with France's Total and China's CNPC on Monday to develop its giant South Pars gas field under the Iran Petroleum Contract (IPC).

Iran Says to Sign IPC Gas Deal with Total, CNPC Monday

"The international contract for development of Phase 11 of South Pars in the framework of IPC will be signed on Monday, July 3, at 14:30, at a ceremony in Tehran attended by Iranian Oil Minister  (Bijan Namdar) Zangeneh and senior officials from France's Total, China's CNPCI and Iran's Petropars," the Iranian oil ministry official told Reuters on Sunday.

A spokesman for Total confirmed the company will sign the contract to produce gas for the Iranian market from 2021, adding that the 20-year deal will be the first Iranian Petroleum Contract signed in Iran.

Total holds a 50.1 interest in the South Pars project with state-owned China National Petroleum Corporation owning 30 percent and Iran's Petropars 19.9 percent.

The development of Phase 11 of the South Pars project will cost up to $5 billion.

The vast offshore gas field is shared between Iran and Qatar, where Total is also a major player in gas production as well as in oil and refining. Tehran calls the giant field South Pars while Doha calls it the North Field.

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