Iran in talks with Total over LNG project
By Fatma Babayeva
Iran’s National Oil Company holds talks with French oil and gas company Total over co-operation in Iran’s liquefied natural gas project.
The statement was made by the Iranian Deputy Petroleum Minister and Managing Director of NIOC, Rokneddin Javadi, to the Shana news agency on May 5.
No decision has been reached on the issue yet, Javadi said, adding that he hopes that the talks will be concluded as soon as possible.
The biggest challenge for Iran’s LNG project is the funding. LNG project of Iran with the annual production capacity of 10.5 million tons of LNG requires $3.3 billion. Due to the international sanctions against Tehran which lasted over years, Iran could not find the necessary investment, he said.
Iranian officials state that 60 percent of the project is complete. However, imports of new equipments and structures that will bring it online are pending.
Previously, it was announced that NIOC, which has 49 percent stake in this project , was holding talks to sell its share to the foreign firms. In addition, the remaining shares are owned by the Iran Oil Pension Fund Investment.
After most of the sanctions imposed on Iran were removed in early 2016, many international oil and gas companies are eyeing to invest in the hydrocarbon projects in the country.
In his remarks, Javadi told that BP is also eager to invest in Iranian oil and gas projects. Contrary to the past, BP is highly willing to cooperate with Iran and transfer needed capital and technology, he said.
Iran has long term potential for becoming one of the world’s top gas producers with 34 trillion cubic meters of blue fuel or around 18 percent of the world’s total reserves.
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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva
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