Iran signed a formal contract with Total SA to develop its share of the world’s biggest natural gas field — the first investment in the country by an international
Iran signed a formal contract with Total SA to develop its share of the world’s biggest natural gas field — the first investment in the country by an international energy company since sanctions were eased last year.
The 20-year deal with National Iranian Oil Co. and China National Petroleum Corp. to develop phase 11 of the South Pars offshore gas field represents the “first of many” projects for Total in Iran, Chief Executive Officer Patrick Pouyanne said Monday at a signing ceremony in Tehran. Total will be operator of the project, with the first phase estimated to cost the partners about $2 billion. Iran’s Oil Minister Bijan Namdar Zanganeh put the overall value of the contract at about $5 billion.
The agreement is “a big deal” for Iran and “will open the door for more companies to sign contracts” with the country, said Robin Mills, the head of Dubai-based consultant Qamar Energy. It “also gains the Iranians some diplomatic cover from both France and China in the event of attempts to impose further sanctions,” he said, referring to antagonism to Iran expressed by some U.S. government officials, including President Donald Trump.