Iran, Total Conducting Talks on Oil Coop.

Gholamreza Manouchehri, the deputy for development and engineering at the National Iranian Oil Company (NIOC), said on Wednesday that the talks concern upstream oil projects as well as manufacturing of industrial equipment, drilling and offshore services as well as engineering services.

France’s Minister of Foreign Affairs and International Development Jean-Marc Ayrault arrived in Tehran on Monday January 30 for a two-day visit, heading a 60-strong senior politico-economic delegation. 

Referring to the visit, Manouchehri said the NIOC chief, Ali Kardor, held talks with French companies during Ayrault’s stay in Tehran. 

NIOC signed a heads of agreement (HOA) with Total in November for development of South Pars Phase 11. 

He said NIOC is seeking to promote the drilling capabilities of Iranian rigs, saying cooperation of Iranian companies with French partners would promote the quality, speed and services of drilling projects. 

Total has signed a Heads of Agreement (HoA) with the National Iranian Oil Company (NIOC) for the development of phase 11 of South Pars, the world’s largest gas field. The South Pars 11 project (SP11) will have a production capacity of 1.8 billion cubic feet per day, or 370 000 barrels of oil equivalent per day. The produced gas will be fed into Iran’s gas network, wrote Total’s official website.

Total will operate the SP11 project with a 50.1% interest alongside Petropars (19.9%), a 100% subsidiary of NIOC, and the Chinese state-owned oil and gas company CNPC (30%).

Under the terms of the HoA, NIOC and the project partners will conduct exclusive negotiations to finalize a 20-year contract in accordance with the technical and economic terms established in the HoA, within the framework of Iranian Petroleum Contract (IPC) recently approved by the Iranian Parliament.

 In parallel, Total will launch engineering studies and a call for tender process so that construction contracts can be awarded immediately upon signature of the final agreement.

The SP11 project will be developed in two phases. The first phase, with an estimated total cost of around 2 billion dollars equivalent, will consist of 30 wells and 2 well head platforms connected to existing onshore treatment facilities by 2 subsea pipelines. At a later stage, a second investment phase, involving the construction of offshore compression facilities, will be launched once required by the reservoir conditions.