Why Total’s $1B investment in Iran’s gas project worthy
French Total, with 50.1 percent stake, signed a $4.8 billion worth agreement with Iran to develop the phase 11 of South Pars gas field. CNPC and Iran’s Petro Pars have 30 percent and 19.9 percent stakes as well. The 20-year deal, based on newly designed contract model, called Iran Petroleum Contract (IPC), can be extended for 5 years further, and would become operational in two stages. The first stage will cost $2 billion, of which Total would invest 50 percent. The project includes construction of two 32-inch pipelines with length 270 km total, as well as drilling 30 wells (including 28 production wells), construction of two 1,500 tons platforms as well as construction of 4.5-inch pipeline (136 km) to transit ethylene glycol from land to offshore project for dehydration of gas and another 4.5 km 36-inch pipeline and a mooring buoy to transit gas condensate there for loading to tankers. Total CEO Patrick Pouyanné said earlier that the revenues from the $1 billion investment preponde