Iran has announced that they have agreed a deal with Total over the continued development of the South Pars gas field.
“We believe that Total has agreed to continue its role in developing South Pars,” Gholamhossein Nozari , the Iranian Oil Minister said. “We believe we should develop our fields and give opportunities to some companies. It depends on them.”
The comments come after recent reports suggested that the Iranian government was not happy with the progress the French oil company was making in the South Pars area. According to the official Islamic Republic News Agency, the managing director of the state-owned National Iranian Oil Co, Seifollah Jashnsaz, was quoted as saying, “under direct U.S. pressure, has made no progress on the project to develop Phase 11 of South Pars.”
Total had previously postponed its investment plans in South Pars last year . The reason given was Iran’s strained relationship with the West and Total indicated that its hands were tied due to UN sanctions imposed on the country.
“Total continues to negotiate, this has not changed,” Total spokeswoman Phenelope Semavoine said. “There is no decision for the moment.”
The Pars-LNG project is a US$5 billion joint venture between Total and the National Iranian Oil Company. The French company has a 30% stake and the venture includes the construction of a gas liquefaction plant costing US$2 billion. The plant will process gas from Phase 11 of the South Pars fields.
