• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 1 day Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 1 hour Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 13 hours CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 19 hours NordStream2
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 8 hours Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 5 days Modest drop in oil price: SPRs vs US crude inventory build
  • 23 hours "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
  • 5 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 5 days 2019 - Attack on Saudi Oil Facilities.

Total Ready To Bet $1B On Iranian Gas Field

France’s energy giant Total will commit US$1 billion to the development of the South Pars offshore gas field in Iran, after the U.S. extended a sanction waiver. In an interview with Reuters, CEO Patrick Pouyanne said that “The U.S. waivers have been renewed and they will be renewed every six to eight months. We have to live with some uncertainty.”

Total took part in the initial development of South Pars back in the 1990s, but was forced out of the country when international sanctions were imposed on Tehran on suspicions it is developing nuclear weapons. Now the company is back for the Phase 11 of the field’s development, estimated to cost some US$5 billion. It has a 50.1-percent stake in the field, partnering with China’s CNPC with 30 percent, and Petropars, which holds the remainder.

The company expects to benefit from the new Iranian Petroleum Contract, promoted by Tehran as a major improvement on the old production-sharing scheme that greatly limited foreign operators’ returns on investments made in the country’s mineral resources. In all, Total is aiming for a minimum of 15 percent in returns on new investments globally. The new contract it inked with the Iranian government for South Pars offers much better conditions, Pouyanne said.

Related: Can Canadian Crude Compete In Asia?

The South Pars field, which Iran shares with Qatar, which calls it the North field, holds an estimated 14 trillion cu m of natural gas in the Iranian section, and 18 billion barrels of gas condensates. This, according to Pars Oil and Gas Company, represents 7.5 percent of the world’s gas reserves and half of Iran’s.

Meanwhile, another Western energy company, Italy’s Eni, signed a preliminary contract with the National Iranian Oil Company, under which it will carry out feasibility studies at two fields, Kish and Darquain. It will also solicit partners for the two fields’ development both in Iran and abroad.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News