Total signed a preliminary agreement, worth $4.8 billion late past year, to develop Phase 11 of the mega gas project in collaboration with China National Petroleum Corp and state-owned Petropars Company of Iran.
Total and CNPC signed a "heads of agreement" with National Iranian Oil Co.in November to develop Phase 11 of the South Pars offshore gas field, a deal that was valued then at $4.8-billion (U.S.).
The phase, which was inaugurated in March 2015, is located in southeast part of South Pars gas field and covers a 206 square kilometers area.
Total is the first Western energy company to invest in a large infrastructure project in Iran since the nuclear agreement, and analysts say they expect other European companies will follow. Qatar has rejected the ultimatum. The French company is expected to produce around 50 million cubic meters of gas per day from Phase 11.
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Iran is one of the third largest producer in the Organization of the Petroleum Exporting Countries (OPEC) and has the second-largest gas reserves and fourth-largest oil reserves in the world.
It is Iran's first investment by an global energy company since sanctions were eased previous year after reaching an worldwide agreement to slow the development of its nuclear program, reports Bloomberg.
The complex will also have downstream units to sell its products in domestic and worldwide markets, according to a MoU which signed between Total and Iran's National Petrochemical Company in 2016.
Total will put in an initial $1 billion for the first stage of the 20-year project.