• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 3 hours WTI @ 67.50, charts show $62.50 next
  • 1 hour Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 2 hours Mike Shellman's musings on "Cartoon of the Week"
  • 7 hours Venezuela set to raise gasoline prices to international levels.
  • 12 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 1 hour Batteries Could Be a Small Dotcom-Style Bubble
  • 7 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 14 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 24 mins Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 13 hours Corporations Are Buying More Renewables Than Ever
  • 2 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 18 hours Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 4 hours France Will Close All Coal Fired Power Stations By 2021
The Real Leader In Global Energy Production

The Real Leader In Global Energy Production

Last week President Trump was…

Why China Will Continue To Buy Iranian Crude

Why China Will Continue To Buy Iranian Crude

While the United States sanctions…

China's CNPC Considers Taking Over South Pars Gas Field

Nat Gas Field

China National Petroleum Corporation (CNPC) is mulling the taking over of the majority stake in an Iranian gas project from Total if the French company walks out of Iran to comply with possible new U.S. sanctions, Reuters reported on Friday, citing industry sources.

In July this year Total signed a contract to develop phase 11 of the South Pars gas field in Iran—the world’s biggest gas field—marking the first Iranian Petroleum Contract (IPC) with a Western major since most sanctions on Iran were lifted. Total holds a 50.1-percent interest and is the operator of the South Pars 11 (SP11) project, while CNPC has 30 percent, and Petropars, a wholly owned subsidiary of the National Iranian Oil Company (NIOC), owns the remaining 19.9 percent.

However, after U.S. President did not certify in October that Iran was complying with the terms of the nuclear deal, now the U.S. Congress has to vote if new sanctions on Iran should be imposed.

It is not clear yet what sanctions could be imposed, but they could ban companies operating in Iran from doing business in the U.S., according to Reuters. In that case, Total would comply and would leave Iran if it is not able to operate in Iran under possible new sanctions. 

“We have signed a contract in Iran. If we can move forward, we’ll move forward. If we cannot, we will have to stop. That’s life,” Total’s CEO Patrick Pouyanne was quoted as saying in October.

Related: Gas Shortage Has China Backtracking On Coal Ban

According to a senior Beijing-based source with knowledge of the South Pars 11 deal who spoke to Reuters, CNPC could take over Total’s interest and become operator of the project if the French company is forced to leave Iran. 

Officials at CNPC have recently held internal talks to discuss the implications of taking control of the project, three industry sources told Reuters.   

Possible changes in project ownership are expected to delay the timetable of South Pars 11 because Total has already started talks with service companies and is expected to award contracts in early 2018, Reuters’ sources say. 

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News