News ID: 187744
Published: 1012 GMT February 15, 2017

Oil Ministry to finalize gas deal with Total soon

Oil Ministry to finalize gas deal with Total soon

Iran is continuing serious negotiations with France's Total to finalize a $2-billion deal to develop South Pars Phase 11, said Oil Minister Bijan Namdar Zanganeh.

"We hope to finalize the deal and sign an agreement in two months," he told state-run TV, Trend News Agency reported.

The CEO of French oil major Total, Patrick Pouyanne said last week that the company plans to make a final decision on investment in a $2-billion gas project in Iran by summer, but the decision hinges on the renewal of US sanction waivers.

He said South Pars 11 will be among a couple of projects to be approved by the company to start by summer, if nothing is modified with regards to the sanctions.

Touching upon Pouyanne's statement, Zanganeh said, "We have already been notified of their concern and Iran's Foreign Ministry is pursuing the issue."

He criticized Total's CEO, saying that publicizing concerns "was not a good decision'.

"We have other deals with foreigners and Total should have considered that," he said.

Iran and Total signed a memorandum of understanding on the development South Pars Phase 11 in late 2016. The overall cost of the project is estimated to reach $4.8 billion.

South Pars Phase 11 aims to produce 1.8 billion cubic feet a day of gas, equivalent to 370,000 barrels of oil, which will be fed into Iran's gas network.

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