Total Confirms South Pars Gas Field Deal with Iran

"This project fits with the group's strategy of expanding its presence in the Middle East, where the origins of the group lie, and growing its gas portfolio by adding low unit cost, long plateau gas assets," Patrick Pouyanne said in a statement as cited by Reuters.

According to the deal, Total would operate the project with a 50.1 percent stake in it, while Petropars, a subsidiary of the NIOC, and Chinese state-owned oil and gas company CNPC would have a 19.9 percent and 30 percent stake, respectively. 

The South Pars 11 project will have a production capacity of 1.8 billion cubic feet per day, or 370 000 barrels of oil equivalent per day. The produced gas will be fed into Iran's gas network.

South Pars covers an area of 9,700 square kilometers, 3,700 square kilometers of which are in Iran’s territorial waters in the Persian Gulf. The remaining 6,000 square kilometers are situated in Qatar’s territorial waters.

The gas field is estimated to contain a significant amount of natural gas, accounting for about eight percent of the world’s reserves, and approximately 18 billion barrels of condensate.

Refrence:Tasnim