France-based oil and gas company Total is eyeing a 50% stake in the $4 billion project in Iran's giant South Pars gas field.
A preliminary deal with the Iranian company was signed in 2016, after the European Union and the United States reduced sanctions as a part of a plan to curb Iran's nuclear ambitions.
The South Pars 11 project is expected to cost about $4 billion, said Total. Once operational, Total would control 50,1% of the project, China's CNPC would holdb30% through one of its subsidiaries and Iran's Petropars would own 19.9%. The final decisions on the project should be taken by summer.
South Pars is part of a Gulf reservoir that is one of the largest gas fields in the world but its progress has been slowed down by years of Western sanctions imposed over Tehran’s program for nuclear weapons, an imputation Iran always denied.
The South Pars project is forecast to have a production capacity of 370,000 barrels of oil equivalent per day and the gas would be injected into the Iranian grid. It would need two offshore platforms and 30 wells.
Total had discussed many projects in 2016 with Iranian officials, including the investment in liquefied natural gas (LNG) plant at Tombak on the Gulf coast and South Azadegan oil field.
Last year, Total purchased 11 million barrels of petroleum products for $394 million, generating a net profit of $2.8 million.