Total: We Have Long History in Iran-CNN

Speaking to the CNN, he said Total was on the verge of signing an agreement for developing the field’s phase 11 in 2005 before the sanctions were imposed on Iran in 2010. 

He said talks are going on with Iran regarding development of the field, expressing optimism a deal will be signed with Iran in the coming days. 

“I would be happy to be the first western company to sign an agreement in Iran,” he added. 

“We have a long history of partnership in Iran… and when we speak about South Pars, which is the same field that is shared with Qatar, so we have a good experience and technology of this field.” 

Pouyanne also suggested that development of each phase of South Pars needs $2b of investment. 

The Total CEO also declined he would travel to Iran for signing the deal with National Iranian Oil Company (NIOC).

NIOC on Tuesday signed a $4.8 billion heads of agreement (HOA) deal with French Total, China National Petroleum Corp. and Iranian Petropars Company on Tuesday for development of the phase 11 of South Pars joint gas field.

Minister of Petroleum Bijan Zanganeh was present in the signing ceremony.

Once the project is implemented, 56 million cubic meters will be added to Iran’s gas extraction capacity from the field which is shared with Qatar.

Under the agreement, the contractor will finance the project, thus luring billions of dollars of investment for the country. 

Development of phase 11 of South Pars gas field the within framework of the new model of oil contracts underlines high share of Iranian companies in various divisions of operations. 

Iran has pitched some 50 upstream oil and gas projects under the newly revised framework of its oil contracts that is hoped to sweeten the previous not-anymore-popular buyback deals.