TEHRAN (TCA) — The French energy giant Total has signed a multibillion-dollar agreement with Iran on the development of an Iranian offshore natural-gas field — the first major Western energy investment since international sanctions were lifted against Tehran under its nuclear accord with world powers, RFE/RL reported on July 3.
The agreement on developing the South Pars offshore gas field also is Iran’s largest business deal with foreign partners since international sanctions against Tehran were eased in 2016.
Total’s Chief Executive Officer Patrick Pouyanne and Iranian Oil Minister Bijan Namadar Zanganeh signed the 20-year deal in the presence of managers of the China National Petroleum Corporation and the Iranian firm Petropars.
Total would lead a consortium over the project that would also comprise CNPC and Petropars. The French company will take a 50.1 percent stake in the South Pars Phase 11 project, while CNPC will own 30 percent and Petropars 19.9 percent.
Total signed a preliminary deal with Iran in November, acquiring a 50.1 percent stake in the $4.8 billion project.
The deal includes 30 natural gas wells and two production units.
The offshore field — the largest natural gas field in the world — was first developed in the 1990s, when Total was one of the largest investors in Iran.
But Total effectively left Iran in 2012 when France joined European Union partners in imposing sanctions over suspicions that Tehran was trying to develop nuclear weapons.
Total said it plans to invest an initial $2 billion for the first stage of the 20-year project.
The aim is to start pumping into Iran’s domestic grid in 2021, eventually reaching above 56 million cubic meters of gas per day, PressTV reported.
