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Iran not to sign IPC on South Pars Phase 11

Business Materials 29 November 2015 13:55 (UTC +04:00)

Tehran, Iran, November 29

By Mehdi Sepahvand - Trend:

Iranian Oil Ministry is not going to sign IPC (Iran petroleum contract) on South Pars Phase 11 and will hold a tender instead, SHANA news agency reported Nov.29.

The IPC is the official name given to Iran's newly unveiled model of oil contracts and is meant to attract foreign investment and rehabilitate the country's oil industry which has been crushed under sanctions.

Phase 11 was to be developed for producing 56 million cubic meters of sour gas per day in order to feed Iran liquefied natural gas (LNG) unit and also produce 80,000 barrels of gas condensate a day.

The National Iranian Oil Company and the French Total reached an agreement in 2000 to develop the upstream side of the phase and launch an LNG production unit with the output of about 10 million tons.

After that, Indonesia's Petronas also offered help with the phase, whereby it was decided that Iran would hold 50 percent, Total 40 percent, and Petronas 10 percent of the projects related to the phase from upstream to downstream. Total, however, refrained from carrying out the project as steel prices hiked.

The project was relegated to Chinese companies in 2009. But China National Petroleum Corporation (CNPC) which was to complete the project in 52 months, refused from implementing its part of the contract, therefore, Iran abolished the contract.

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