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France’s Total Eyes Investment in Iran’s Petchem Industry

“The global agreement for the development of phase 11 of South Pars will be signed on Monday in the presence of the oil ministry and managers of Total, the Chinese company CNPC and Iranian company Petropars”, a ministry spokesman tells AFP.Iran plans Monday to sign a formal contract with Total SA and China National Petroleum Corp.to develop its share of the world’s biggest natural gas field – the first investment in the country by an worldwide energy company since sanctions were eased previous year.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.Meanwhile, reports suggest that Total has begun separate negotiations with Iran to have a share of the country’s lucrative petrochemical industry.Total Chief Executive Patrick Pouyanne has previously said it was worth the company taking the billion dollar risk of future sanction restrictions being imposed “because [the deal] opens a huge market”. China National Petroleum Corporation (CNPC) will own 30 percent and Petropars 19.9 percent. The French company is expected to produce around 50 million cubic meters of gas per day from Phase 11.According to a statement on Total’s website, the Phase 11 project will be developed in two phases. The offshore field is Iran’s section of the world’s biggest deposit, also shared with Qatar.