Ali Kardor, the Managing Director of the National Iranian Oil Company (NIOC), said on Wednesday that Total is about to publish a text in which it will ascertain it has not changed its plans regarding development of the project.
Referring to a recent report by Reuters quoting Patrick Pouyanné, Total CEO, about his company’s decision to develop the project, Kardor said, “The Total CEO has not announced his company would fully follow American stances and we are currently producing a joint statement regarding the issue.”
Total says it follows international regulations, NIOC chief added. “This is a different issue from the sanctions’ snapback which will not take place all at once. The US might take stances but that does not mean the sanctions can be put back in place. This is an issue international companies are already aware of.”
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.