SP11 to Go Ahead Even If Total Quits
Roya Khaleqi
The CEO of Pars Oil and Gas Company (POGC) has reiterated that the development of Phase 11 of South Pars gas field will go ahead as planned.
"In the contract for the development of Phase 11 of South Pars, a mechanism has been worked out so that nothing would go wrong with the project even if Total happened to pull out," Mohammad Meshkinfam said. France's energy giant Total has signed a nearly $5 billion deal to develop Phase 11 of South Pars.
"We hope that Total would stay in Iran," he said amid speculation that US President Donald Trump may seek to impose fresh sanctions on Iran.
He made the remarks when asked to comment on the Chinese CNPCI's alleged expression of readiness to take over Total's share in case the French company pulls out.
"It means that if Total pulls out of this project CNPCI and Petropars are still present," he added.
Last July, a $4.879 billion IPC-style contract was signed between the National Iranian Oil Company and a Total-led consortium which also includes China's CNPCI and Iran's Petropars for the development of Phase 11 of South Pars. Total has a 50.1% share in the project, CNPCI 30% and Petropars 19.9%.
The development project is expected to produce 56 mcm/d of rich gas to be transferred to the refineries of Phases 6-8 and Phase 12 of South Pars.
Asked how the project was going on, Meshkinfam said: "Total's work in this phase is going ahead on schedule and in some certain cases ahead of schedule."
He said all projects often start with delay, adding: "The tender papers have been distributed and EPC contractors' envelopes have been opened and the process of choosing Iranian contractors is under way."
Meshkinfam said Phase 11 has no onshore sector. He added: "We plan to pump 1 bcf (28 mcm) of gas produced in this phase to Phases 6-8 of South pars and 1 bcm to Phase 12. Therefore, there is practically nothing to do onshore."