Baku, Azerbaijan, July 4
By Khalid Kazimov – Trend:
If the world powers snap back Iran’s nuclear sanctions, the Islamic Republic’s huge oil deal with French Total would be revoked, an Iranian official said.
“If the sanctions return, all these contracts would be dissolved within an hour which is normal,” Mehr news agency quoted Amir Hossein Zamaninia Iranian Deputy Oil Minister for International Affairs as saying.
He also speculated that Total had earlier discussed the issue of its Iran deal with the Americans.
French Total, with 50.1 percent stake, signed a $4.8 billion worth agreement with Iran to develop the phase 11 of South Pars gas field. CNPC and Iran’s Petro Pars have 30 percent and 19.9 percent stakes, as well.
The 20-year deal, within the framework of newly designed contract model namely “Iran Petroleum Contract (IPC)” would become operational in two phases.
The first phase will cost $2 billion, of which Total would invest 50 percent.
The project includes construction of two 32-inch pipelines with length of 270 km total, as well as drilling 30 wells (including 28 production wells), construction of two 1,500 tons platforms as well as construction of 4.5-inch pipeline (136 km) to transit ethylene glycol to offshore project for dehydration of gas and another 4.5 km 36-inch pipeline and a mooring buoy to transit gas condensate there for loading on to tankers.
The contract is considered as Iran's biggest energy deal since world powers removed nuclear sanctions on Tehran last January following a historic deal known as Joint Comprehensive Plan of Action (JCPOA).
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