Iran says no delay to Total South Pars deal

A day after US President Donald Trump extended Iran sanctions waivers, a top Iranian oil official said Total’s work on the South Pars phase 11 project is proceeding without delay.

In a statement released on Saturday, Minister of Petroleum Bijan Namdar Zangeneh said work on the project was on schedule and all of the project’s tenders, except one for drilling, had been held.

The Total-led project to develop phase 11 of the super-giant gasfield is the most significant international hydrocarbons deal Iran has struck since sanctions were lifted two years ago.

In July 2017, the National Iranian Oil Company signed the deal with a consortium comprising Total (as operator with a 50.1% stake), CNPC (30%) and Iran’s Petropars (19.9%).

The project has been valued at USD 4.8 billion, and Total has pledged an initial USD 1 billion in investment, citing caution regarding US threats against the Iran nuclear deal. The French company has yet to comment on Friday’s four-month extension of US sanctions relief.