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TEHRAN, Feb. 18 (Shana) – French energy giant, Total, is determined to develop phase 11 of the supergiant South Pars Gas Field and has started financing 15 million dollars for carrying out the first phase of the project to develop the phase, a senior Iranian oil official says.
Referring to a recent report by Reuters quoting Patrick Pouyanné, Total CEO, about his company’s decision to develop the project, Kardor said, “The Total CEO has not announced his company would fully follow American stances and we are currently producing a joint statement regarding the issue.”
Total has signed a Heads of Agreement (HoA) with the National Iranian Oil Company (NIOC) for the development of phase 11 of South Pars, the world’s largest gas field. The South Pars 11 project (SP11) will have a production capacity of 1.8 billion cubic feet per day, or 370 000 barrels of oil equivalent per day. The produced gas will be fed into Iran’s gas network, wrote Total’s official website.
Under the terms of the HoA, NIOC and the project partners will conduct exclusive negotiations to finalize a 20-year contract in accordance with the technical and economic terms established in the HoA, within the framework of Iranian Petroleum Contract (IPC) recently approved by the Iranian Parliament.
The SP11 project will be developed in two phases. The first phase, with an estimated total cost of around 2 billion dollars equivalent, will consist of 30 wells and 2 well head platforms connected to existing onshore treatment facilities by 2 subsea pipelines. At a later stage, a second investment phase, involving the construction of offshore compression facilities, will be launched once required by the reservoir conditions.