CNPC Signs Deal with Total S.A. & NIOC to Develop Iranian Gas Field

China National Petroleum Corporation (CNPC) signed a contract with French oil and gas giant Total S.A. and National Iranian Oil Company (NIOC) in Teheran on July 3 to develop phase Ⅱ of the South Pars gas field in Iran.
According to the agreement, Total S.A. will take a 50.1% stake in the US$4.8 billion project while CNPC will own 30% and NIOC will own 19.9%. Exploration and operation will last 20 years.
This is the first cooperation agreement Iran has signed with overseas companies in the oil and gas sector since economic sanctions were lifted. The first phase of the project will involve construction of 30 wells and two wellhead platforms. In the second phase, offshore compression facilities will be built to support gas storage. Phase Ⅱ will eventually produce 5.6 billion cubic meters of natural gas per day.
Jointly owned by Iran and Qatar, the South Pars field, with a total area of 9 700 square kilometers is the largest natural gas field in the Persian Gulf.