Main Contract for Iran’s South Pars Field to Be Awarded after Trump’s Clarity, Total Says

News ID: 1558094 Service: Economy

TEHRAN (Tasnim) – An official with French energy giant Total said the main contract for development of the 11th phase of South Pars gas field in southern Iran will be awarded in 2018 after US President Donald Trump's final approval.

Total’s Chief Financial Officer Patrick de La Chevardiere said the group was proceeding with plans to announce tenders for its Iran South Pars gas project and the main contract would be awarded at beginning 2018 when there would be clarity from the US, according to Reuters on Friday.

Recently, Iranian Deputy Oil Minister for International Affairs Amir Hossein Zamaninia said Iran expects to seal energy contracts worth more than $20bn over the next year.

Zamaninia said the Islamic Republic was negotiating 28 provisional agreements with foreign oil companies. These include Maersk Oil and Rosneft to develop the oil layer in South Pars, the world’s largest gas field, and with Russian firms, Lukoil, Gazprom, and Zarubezhneft to develop oilfields, including Paydar Gharb, Abteymour and Mansouri.

“Any international oil company that you know, we are negotiating with . . . except the Americans,” he said.

He added that “if conservatively put” Tehran anticipated signing contracts worth more than $20bn over the next 12 months.

Zamaninia said he believed there was “no tangible change in international oil companies’ determination (to invest) and the speed of their negotiations with Iran” since US President Donald Trump refused to certify the 2015 nuclear deal between Tehran and world powers.

In early July, the Iranian Oil Ministry signed a $5 billion contract with France’s Total and China’s National Petroleum Company (CNPC) on the development of the 11th phase of South Pars gas field.

Total has a 50.1 percent share in the 20-year deal. The state-owned China National Petroleum Corp. has a 30 percent stake and Iran’s Petropars has 19.9 percent.

The deal includes 30 wells and two production units.

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