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Iran's deputy oil minister talks CNPC's role in South Pars project

Oil&Gas Materials 21 November 2018 10:20 (UTC +04:00)

Tehran, Iran, Nov.21

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China National Petroleum Corporation (CNPC) has not yet started its work in the 11th phase of the South Pars field in Iran, Amir Hossein Zamani-nia, Iran's deputy oil minister told ISNA.

Reportedly, the $4.8-billion agreement between Total, CNPC and local firm Petropars to develop phase 11 of South Pars, the world’s largest gas field, has been left in disarray, following the US decision to impose sanctions on the Islamic Republic.

The United States which was seeking to cut Tehran’s lifeline – its energy sector – by banning the purchase of petroleum from Iran, told foreign companies to phase out their operations in Iran before the 180-day wind-down period.

France’s Total was the first to announce the company had left Iran in mid-July because it received no concessions from the US government regarding sanctions on the Islamic Republic.

The oil and gas company lost $40 million after walking out of the expansion project for Phase 11 of South Pars Gas Field in the Persian Gulf.

At the same time, China’s top state-owned refiner, CNPC, decided to take over Total’s stake in phase 11 of Iran’s South Pars gas field after the French company left the project in August.

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