Iran Signs Major Gas Deal With France's Total

TEHRAN, Nov 8 (APP - UrduPoint / Pakistan Point News - 08th Nov, 2016 ) : Iran signed a deal with France's Total on Tuesday to develop a major offshore gas field, its first big contract with a Western energy firm since the lifting of sanctions.

Total will lead a consortium also including China National Petroleum Corporation and Iran's Petropars to develop Phase 11 of the South Pars field. The firm's head of middle East exploration and production, Stephane Michel, said there would be a total investment of $4.8 billion (4.3 billion Euros) -- with the development and operation of the project due to last 20 years.

The companies signed a memorandum of understanding in Tehran on Tuesday, and the final agreement will be signed early next year, Michel said. It is the first deal of its kind since most international sanctions were lifed in January under a nuclear deal with world powers.

It marked the return to Iran of Total, four years after the company pulled out when France joined European Union partners in imposing sanctions, including an oil embargo.