Baku, Azerbaijan, Feb. 10
By Ilgar Emil – Trend:
While Total says it has suspended the executive decision to develop the South Pars Phase 11 project, Iran claims the French company has already started the project.
The CEO of French oil major Total, Patrick Pouyanne said Feb. 9 that the company plans to make a final investment decision on a $2 billion gas project in Iran by summer, but the decision hinges on the renewal of US sanction waivers.
He said South Pars 11 will be among a couple of projects to be approved by the company to start by summer, if nothing is modified with regards to the sanctions.
“There are two executive orders that are supposed to be renewed before summer,” he said, explaining that the administration of previous US President Barack Obama had signed waivers suspending the sanctions.
“These are supposed to last about 18 months. So President Trump will have to, or not, renew these sanction waivers,” Pouyanne told journalists in Paris.
However, the Managing Director of Pars Oil and Gas Company (POGC) Mohammad Meshkinfam told Mehr Feb. 10 that Total has already started executive work on South Pars Phase 11, aimed at producing 50 million cubic meters per day (mcm/d) of gas and 80,000 barrels per day of gas condensate.
“A tender on construction of the first jacket would be issued soon,” he said, adding that the head of the project development consortium is Total.
He said that a local partner for the project would also be chosen soon.
Iran and Total signed and memorandum of understanding on development South Pars Phase 11 in late 2016. The overall cost of the project is estimated to reach $4.8 billion.