The development project will see 20 wells drilled and two wellhead platforms built and connected to existing facilities by two underwater pipelines. A second phase will involve the construction of offshore compression facilities.
Pouyanné provided a brief history of Total's activity in Iran, saying it came to Iran in 1995 and signed a deal with NIOC for a development project in Siri Island.
"Today again, we are the first international company to come back to Iran and it is a great source of pleasure and pride to come to you…to sign the South Pars 11 development contract," he said.
Pouyanné expressed pleasure that Total signed the first IPC deal in Iran.
He said "Total has a long history in Iran," pointing to its development of phases two and three of South Pars in the 1990s.
Total had signed up to develop phase 11 back in 2009 but was forced to abandon its Iranian projects in 2012 when France joined European Union partners and imposed sanctions, including an oil embargo.
He said that the agreement was signed just 18 months after Iran and France signed a memorandum of understanding (MOU) during a visit to Paris by President Rouhani.
He noted that the agreement would be "mutually beneficial" for all parties involved.
Pouyanné said Total would remain in Iran for at least 20 years, saying it presence in Iran would help the country develop its gas market.
He noted that Total's operation in Iran would "contribute to the development of Iran's manufacturing capabilities…and development of Iran's oil and gas industry."
"This is a major agreement for Total, which officially marks our return to Iran to open a new page in the history of our partnership with the country," Pouyanné was separately quoted as saying in a statement. "Total will develop the project in strict compliance with applicable national and international laws."
$80bn Revenue from SP11
The heads of agreement signed for the SP11 project facilitated negotiations between the companies to conclude the deal.
In a bid to save time, while the text of the agreement was being drafted, NIOC had provided necessary documents for bidders and was in talks with companies that were willing to operate the project.
The duration for the contract with Total would be 20 years starting from the day of signature of the agreement. NIOC would be supervising construction activities throughout the contract.
According to the timeframe set in the contract, primary production from the field will start 40 months after the signature of the deal.
Due to the complexity of construction of pressure booster facilities, 36 months would be needed for studying and preparation, and 60 months for building platforms.
Addressing the signing ceremony, Kardor said implementation of the SP11 agreement would let Iran produce 2 bcf/d or 56 mcm/d of gas.
"Therefore, over a 20-year period, 335 bcm of rich gas will be recovered. Moreover, we will have 290 mcm gas condensate, 14 million tonnes of liquefied gas, 12 million tonnes of ethane, 2 million tonnes of sulfur along with 315 bcm of sweet gas," he said.
"With oil price at $50 a barrel, the value of products of this phase will reach $23 billion. Given the value created by the products, we can expect $80 billion in revenue," said Kardor.
Two-State Project
Kardor said that the SP11 project would be a two-phase one. "In the first stage, after installing platforms in Phase 11 and investing $2.4 billion, we would reach 2 bcf/d output."
He said that total production had fallen in South Pars, noting that the second stage of SP11 would be to make up for losses.
"In the second stage, we will design pressure booster platforms with an investment of $2.4 billion," he added.
Kardor said the advantages of the second phase of SP11 project included transfer of technological knowhow to Iran.
"Since Total had earlier cooperated with Iran in Phases 2 and 3 of South Pars, as well as in the Siri project with Iranian contractors and manufacturers, we expect that this trend would go ahead smoothly. Total is eager to cooperate with these companies," he said.
Fast SP11 Development
CNPC's Lu said the SP11 agreement was a new chapter in Iran's petroleum industry, describing it as a good example for cooperation between NIOC and international oil companies.
He said that many investors would come to Iran in the near future to take advantage of opportunities created in Iran.
Lu extended his gratitude to Iran's Ministry of Petroleum, NIOC as well as Pars Oil and Gas Company (POGC) for their cooperation with CNPC to bid for the project.
"Without your cooperation we could not come together here to celebrate our victory," he said.
Lu said that NIOC displayed a high level of expertise and knowhow to finalize this agreement and appreciated Total for having facilitated the negotiations by showing flexibility.
He said that Petropars would have a significant role in the project to develop the offshore South Pars.
Lu said since entering Iran's oil market in the 1990s, CNPC had been involved in numerous oil and gas projects in Iran, including North Azadegan oil field.
"Thanks to support provided by the Iranian government, NIOC and local companies, we have overcome numerous challenges," he said.
Lu said: "We are assured that through close cooperation and by applying advanced technologies, Total, CNPCI and Petropars will be able to have the highest production from Phase 11 of South Pars in the shortest possible time."
"In the long-term, parties to the contract and the Iranian government will both benefit from this big project. CNPCI will use up its capabilities to facilitate the implementation of this contract and help materialize the development of Phase 11 of South Pars," said Lu.
Technology Transfer to Petropars
Akbari said Total had a separate plan to transfer technology to Petropars. "This issue will be separate from this company's responsibility for domestic manufacturing and transfer of technology to Iranian companies."
"So far, Petropars has successfully concluded the development of 11 phases of South Pars with a total daily output of 11 bcm/d of natural gas and 500,000 b/d of gas condensate."
"Petropars will be a non-operator in its cooperation with France's Total and will fulfil its obligations," said Akbari.