Tuesday, November 08, 2016

Iran signs major gas deal with France's Total

Iran signed a deal with France's Total on Tuesday to develop a major offshore gas field, its first big contract with a Western energy firm since sanctions were loosened in January.

Total will lead a consortium also including China National Petroleum Corporation (CNPC) and Iran's Petropars to develop Phase 11 of the South Pars field under a 20-year contract worth $4.8 billion (4.3 billion euros).

The project will eventually supply 50.9 million cubic metres (1.8 billion cubic feet) of gas per day into Iran's national grid, and marks a breakthrough in the oil ministry's efforts to attract Western investment and know-how to improve its outdated energy infrastructure.

The companies involved signed a memorandum of understanding in Tehran on Tuesday, and the final agreement will be signed early next year, Total's head of Middle East exploration and production, Stephane Michel, said.

It is the first deal of its kind since most international sanctions on Iran were lifted in January under a nuclear deal with world powers.

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