Total wins Iranian South Pars field phase 11 development

Total said it has signed a heads of agreement with the National  Iranian Oil Company for the development of phase 11 of South Pars, the world’s largest gas field. 

The project will have a production capacity of 1.8 billion cubic feet per day or 370 000 barrels of oil equivalent per day, feeding it to the Iranian gas network, Total said in a statement.

Total will operate the SP11 project with a 50.1 percent interest alongside Petropars (19.9 percent), a unit of NIOC, and the Chinese state-owned oil and gas company CNPC (30 percent).

Under the terms of the HoA, NIOC and the project partners will conduct exclusive negotiations to finalize a 20-year contract in accordance with the technical and economic terms established in the HoA, within the framework of Iranian Petroleum Contract (IPC) recently approved by the Iranian Parliament.

In parallel, Total will launch engineering studies and a call for a tender process so that construction contracts can be awarded immediately upon signature of the final agreement.

The SP11 project will be developed in two phases, the statement reads.

The first phase, with an estimated total cost of around US$2 billion, will consist of 30 wells and 2 well head platforms connected to the existing onshore treatment facilities by two subsea pipelines.

At a later stage, a second investment phase, involving the construction of offshore compression facilities, will be launched once required by the reservoir conditions.