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 sanctions were loosened in January.

Total will lead a consortium also including China National Petroleum Corporation (CNPC) and Iran's Petropars to develop Phase 11 of the South Pars field under a 20-year contract worth $4.8 billion (4.3 billion Euros).

The project will eventually supply 50.9 million cubic metres (1.8 billion cubic feet) of gas per day into Iran's national grid, and marks a breakthrough in the oil ministry's efforts to attract Western investment and know-how to improve its outdated energy infrastructure.

The companies involved signed a memorandum of understanding in Tehran on Tuesday, and the final agreement will be signed early next year, Total's head of middle East exploration and production, Stephane Michel, said.