Baku, Azerbaijan, Sept. 13
By Fatih Karimov - Trend:
French energy giant Total has been dropped out of developing Iran's South Pars gas project.
The National Iranian Oil Company has tasked two Iranian companies with developing the phase 11 of the gas field. So, the participation of Total in the project has been actually canceled, Iran's Mehr news agency reported on September 13.
After the finalization of nuclear talks between Iran and the P5+1 group of countries, media reported that Total may develop phase 11 of the South Pars gas field.
Iranian Oil Minister Bijan Namdar Zanganeh said in July that Iran welcomes Total's return to the resource-rich country amid Tehran's drive to step up oil and gas development projects after the removal of sanctions.
Zanganeh made the announcement after meeting French Foreign Minister Laurent Fabius who visited Tehran to "revive relations".
However, one month after the negotiations, Ali Akbar Shabanpour, managing director of Pars Oil and Gas Company announced that the development of phase 11 has been transferred to Petropars and another Iranian company.
In April, CEO Patrick Pouyanne said Total could not ignore Iran's natural gas potentials. "Iran has the world's second largest gas reserves after Russia, and we will consider returning to this country once sanctions are lifted," he said
Phase 11 of South Pars is being developed to produce two billion cubic feet a day of sour gas and 80,000 barrels a day of gas condensate.
Iran is currently producing 300 million cubic meters (mcm) of gas per day from South Pars.
The country, which sits on the world's second largest natural gas reserves after Russia, has been trying to enhance its gas production by increasing foreign and domestic investments, especially in South Pars gas field.