The world's largest gas field, South Pars is being developed in 12 phases. The phase 11 of the project is estimated to have a production capacity of 1.8 billion cubic feet per day.
As part of the Heads of Agreement (HoA), Total will operate the South Pars 11 project (SP11) with 50.1% stake. Other partners include NIOC subsidiary Petropars with 19.9%, and the Chinese state-owned oil and gas company CNPC 30%.
The deal allows NIOC and the project partners to negotiate to finalize a 20-year contract within the framework of Iranian Petroleum Contract (IPC).
Total chairman and CEO Patrick Pouyanné said: “Following Total’s successful development of phases 2 and 3 of South Pars in the 2000s, the Group is back to Iran to develop and produce another phase of this giant gas field.
“Total will develop the project in strict compliance with national and international laws and looks forward to working alongside the Chinese state-owned company CNPC in this additional international partnership.
“This project fits with the Group’s strategy of expanding its presence in the Middle East, where the origins of the Group lie, and growing its gas portfolio by adding low unit cost, long plateau gas assets.”
The SP11 project involves two phases. The $2bn first phase comprises 30 wells and 2 well head platforms connected to existing onshore treatment facilities by 2 subsea pipelines
The second phase involves construction of offshore compression facilities which will be launched based on the reservoir conditions.
Total said it plans to launch engineering studies and float tenders for the construction contracts.
Image: The South Pars Area in Iran. Photo: courtesy of Alireza824/Wikipedia.
