Baku, Azerbaijan, April 10
By Gazenfer Hamidov – Trend:
French oil giant Total has held various tenders to attract sub-contractors for development of phase 11 of Iran’s South Pars field, Mohammad Meshkinfam, managing director of Pars Oil and Gas Company, said.
The overall value of the tenders held by Total reaches 700 million euros, Meshkinfam said, the Iranian oil ministry’s SHANA news agency reported April 10.
Total signed a deal with National Iranian Oil Company (NIOC) last July to develop phase 11 of Iran’s South Pars field with an initial investment of $1 billion. It was the first major Western energy investment in the Islamic Republic since sanctions related to Iran’s nuclear-power program were lifted in 2016.
The project will have a production capacity of 2 billion cubic feet per day (or 400,000 barrels of oil equivalent per day, including condensate). The produced gas will supply the Iranian domestic market starting in 2021.
This contract, which has a 20-year duration, is the first Iranian Petroleum Contract (IPC) and is based on the technical, contractual and commercial terms as per the Heads of Agreement signed on November 8, 2016.
Total will be the operator with a 50.1 percent stake, alongside Chinese state-owned oil and gas company CNPC with 30 percent and National Iranian Oil Co subsidiary Petropars with 19.9 percent.
Meshkinfam said that results of some of the tenders were submitted to Pars Oil and Gas Company, which is the operator of the field, adding that the winners of tenders for sub-contracts are mainly Iranian companies.
The tenders cover various services including drilling, oilfield jacket, oil platform topside, marine pipeline and platform Installation, according to the official.
After announcement of the final winners, the contracts will be signed for the services, he added.