Friday, 02 February, 2018

Iran, Total to finalize $2 billion gas contract within two month

A customer holds a gas pump as he fills-up his car in a Total station in Nice, France, February 9, 2017.     REUTERS/Eric Gaillard

Iran and French energy giant Total will finalize a $2 billion gas contract within two next month, Iranian oil minister Bijan Namdar Zanganeh said on Tuesday.

According to Zanganeh, National Iranian Oil Company and Total are still discussing the detail of a contract to develop Phase 11 of South Pars following a preliminary agreement signed in November.

“Talks are underway and the agreement will be finalized in two months as the two sides are thrashing out the details,” Zanganeh was quoted as saying by Mehr News Agency on Tuesday.

Total was the first Western energy company to sign a major deal with Tehran since the lifting of international sanctions against Iran.

According to Reuters, French company plans to make a final investment decision in Iran by the summer, but the decision hinges on the renewal of U.S. sanctions waivers, Chief Executive Patrick Pouyanne said earlier this month.

“From the information I have the policy of the European Union is not subordinate to the United States,” Zanganeh told Mehr News.

“We will take the necessary steps to go ahead with the contract. But we also have a complaint as to why these things are being said.”

Zanganeh added that there has been no decision to stop the signing of new contracts but that some contracts have not been finalised because it is a time consuming process.

Total was active in developing Iranian energy projects for more than 20 years, including in South Pars. But it ceased operations in 2010 following disagreements over contract terms as well as pressure from the French and US governments over oil and trade sanctions against Tehran.

Financial Tribune contributed to this report

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