Total signs to develop phase 11 of giant South Pars Iran gas fieldStaff Writer | November 8, 2016
Total has signed a Heads of Agreement (HoA) with the National Iranian Oil Company (NIOC) for the development of phase 11 of South Pars, the world's largest gas field.
Oil exploration Total will operate the SP11 project
Total will operate the SP11 project with a 50.1% interest alongside Petropars (19.9%), a 100% subsidiary of NIOC, and the Chinese state-owned oil and gas company CNPC (30%).
Under the terms of the HoA, NIOC and the project partners will conduct exclusive negotiations to finalize a 20-year contract in accordance with the technical and economic terms established in the HoA, within the framework of Iranian Petroleum Contract (IPC) recently approved by the Iranian Parliament.
In parallel, Total will launch engineering studies and a call for tender process so that construction contracts can be awarded immediately upon signature of the final agreement.
The SP11 project will be developed in two phases. The first phase, with an estimated total cost of around 2 billion dollars equivalent, will consist of 30 wells and 2 well head platforms connected to existing onshore treatment facilities by 2 subsea pipelines.
At a later stage, a second investment phase, involving the construction of offshore compression facilities, will be launched once required by the reservoir conditions. ■