Iran, Total sign a $5 billion energy deal

دیدار مدیر عامل شرکت توتال فرانسه با رییس جمهور

Tehran (ISNA) - Iran signed a deal Monday with France’s Total SA and China’s state-run China National Petroleum Corporation (CNPC) to develop the South Pars offshore field, one of the world’s largest natural-gas fields.

The $5 billion agreement is the first energy deal between foreign companies and Iran since the lifting of sanctions against Tehran.  

The 20-year project involves 20 wells, two wellhead platforms, and to connect two existing facilities by underwater pipeline. A second phase includes constructing offshore compression facilities. The project’s goals are to process 2 billion cubic feet of natural gas each day, the equivalent of about 400,000 barrels of oil. Total will have 50.1 percent stake in the deal, with CNPC taking 30 percent, and Petropars, a subsidiary of the state-run National Iranian Oil Company, 19.9 percent.

“This is a major agreement for Total, which officially marks our return to Iran to open a new page in the history of our partnership with the country,” Total’s CEO, Patrick Pouyanné said during the signing ceremony. “Total will develop the project in strict compliance with applicable national and international laws.”

Hossein Amiri Khamkani, a member of Iran’s parliamentary committee on energy, said the deal “breaks the taboo of American sanctions and opens the way for other companies.”

"This contract will send a strong political message to the world especially at the time that the Americans have adopted a confrontational course (against Iran)," the head of the Iran’s petroleum contracts committee, Mehdi Hosseini said.

"This shows that the world is not following their path," Hosseini added.

Iranian oil minister Bijan Namdar Zanganeh said Iran’s oil industry needs some $200 billion in investment over the next five years, and European firms have been hungrily eyeing opportunities in a country with the world's second-largest gas reserves and fourth-largest oil reserves.

Moreover, Iranian President Hassan Rouhani met with the Chairman and CEO of France’s Total Company and described South Pars region as an important centre for developing international cooperation with Iran in the field of energy-technology.

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