Azernews.Az

By Trend

Iran and a Total-led consortium signed a contract for development of Phase 11 of South Pars gas field July 3 in Tehran.

Iran’s oil minister, Bijan Namdar Zanganeh, head of the National Iranian Oil Company, Ali Kardor, and Total CEO Patrick Pouyanné as well as senior officials of China's CNPC and Iran’s Petropars attended the signing ceremony, which was held in Iran’s oil ministry, Trend's correspondent reported from the event.

Under the deal, Total would operate the project with a 50.1 percent stake, China's CNPC would own 30 percent and Iran's Petropars would have 19.9 percent.

The contract is the first deal based on the Islamic Republic’s newly designed oil and gas agreements, called Iran Petroleum Contract (IPC).

The Phases 11 development project of the South Pars field is set to produce 56 mcmd of soar gas.

Within a 20-year period, 335 billion cubic meters of soar gas will be extracted from the phase. Once processed, 315 billion cubic meters of sweet gas, 290 million cubic meters of gas condensate, 2 million tons of sulfur, 14 million tons of liquefied petroleum gas and 12 million tons of ethane will be produced.

The Phase 11 is expected to bring $84 billion worth of revenues for Iran, based on the current price of crude oil.

On the sidelines of the signing ceremony Zanganeh said that the contract, which is the first IPC contract, will amount to $5 billion worth of investment.

South Pars, located in southern region, is divided into 24 development phases, and contains 40 trillion cubic meters of natural gas.

It covers an area of 9,700 square kilometers, 3,700 square kilometers of which are in Iran's territorial waters in the Persian Gulf. The remaining 6,000 square kilometers are in Qatar's territorial waters.

Additional reporting by Fatih Karimov

---

Follow us on Twitter @AzerNewsAz