China's CNPC replaces France's Total in Iran`s gas project - minister

Business Materials 26 November 2018 09:35 (UTC +04:00)

Tehran, Iran, Nov.26


The CNPC has formally replaced Total in the development of the 11th phase of the South Pars gas field, the Iran oil minister Bijan Zanganeh said, IRNA reported.

Referring to the withdrawal of Total from the South Pars Phase 11 development project, the oil minister said CNPC has officially replaced Total, but hasn't started working yet.

“Negotiations should be held with CNPC to see when it would start operational activities,” Zanganeh noted.

Total and CNPC are part of an international consortium that signed a deal with Iran's state oil firm National Iranian Oil Company (NIOC) in 2017 to develop Phase II of the South Pars field, which has the world's biggest natural gas reserves ever found in one place.

Total made an initial investment of $1 billion for its 50.1 percent stake. It was the first Western energy investment in the Islamic Republic after sanctions were lifted in 2016. CNPC bought 30 percent of the project.

In August, Total has officially left the agreement for the development of phase 11 of South Pars, after it failed to obtain a waiver from U.S. sanctions.