Iran to offer South Pars Phase 11 in London summit if failing to make deal with Total
Tehran, Iran, January 31
By Mehdi Sepahvand -- Trend:
If Iran does not reach a contract with the French Total, it will offer the development of South Pars Phase 11 at the London oil summit, according to Iranian Oil Minister Advisor Mansour Moazami.
The National Iranian Oil Company (NIOC) and Total recently signed a MoU on 150,000 to 100,000 barrels of crude oil a day.
Moazami said Iran is willing to have Total pay for the oil in the form of service rendered into developing oil fields, ILNA news agency reported January 31.
According to the official, Total representatives are set to travel to Iran to discuss the issue. Mohazami underlined that Phase 11 is very important to Iran, at the same time stating that Iran has good experience of working with Total on oil fields.
Total CEO Patrick Pouyanné was recently quoted by Agence France-Presse as saying the company will buy 150,000 to 200,000 barrels a day of Iranian crude.
Iran canceled a London conference to promote new contracts for global oil companies, two weeks after economic sanctions were lifted, because the British government hasn't been able to issue visas for Iranians to travel.
The ministry spent the past two years working on a new model contract, called IPC (standing for Iran Petroleum Contract), in which fees paid to international companies will be linked to the oil price and determined on a sliding scale, with riskier developments paying more.
The London event in late February was meant to foreign companies that were unable to attend a November 2015 conference in Tehran at which officials unveiled projects under the new terms.