France's Total Set to Invest $1 Billion in Giant Iranian Gas Field

French energy giant Total SA says it will sign a deal that completes a $A1.3b investment in Iranian gas

France's Total Set to Invest $1 Billion in Giant Iranian Gas Field

"We are proud and honored to be the first worldwide company to sign" one of Iran's new oil and gas contracts, a Total spokesman said in an email.

Total signed a preliminary deal with Iran in November as the lead partner alongside China National Petroleum Corporation (CNPC) and Iran's Petropars.

Total Chief Executive Patrick Pouyanne has previously said it was worth the company taking the billion dollar risk of future sanction restrictions being imposed "because [the deal] opens a huge market".

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The South Pars 11 project will have a production capacity of 1.8 billion cubic feet per day, or 370,000 barrels of oil equivalent per day. Royal Dutch Shell, another energy giant, has signed several memorandums of understanding for projects in Iran, as have dozens of other companies. Its oil production climbed 33 percent past year after sanctions related to its nuclear program were eased in January 2016, according to data compiled by Bloomberg.

Asadollah Qarekhani, the rapporteur of Majlis Energy Commission, said last week that Total is to complete the Phase 11 project in three years and extract natural gas from the field for 20 years. The Paris-based company was working on South Pars until sanctions forced it to withdraw in 2009.

CNPC has been present in Iran since 2004, operating in oil, gas and oil field services, according to the company's website.

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