LoU Signed for Development of Phase 11 of South Pars Gas Field
The Letter of Understanding (LoU) for development of Phase 11 of South Pars Gas Field was singed
The Letter of Understanding (LoU) for development of Phase 11 of South Pars Gas Field was singed, within the scheme of new oil contracts, by and between the National Iranian Oil Company (NIOC) and a Consortium comprising TOTAL of France, Chinese National Company for Petroleum (CNCP) and Petropars Limited (PPL).
The project is worth USD 4.8 billion and the LoU was signed on Tuesday November 8, 2016 (ABAN 18, 1395), at the presence of Minister of Petroleum, Engineer Zanganeh, between the National Iranian Oil Company (NIOC) and a Consortium comprising TOTAL of France, Chinese National Company for Petroleum (CNCP) and Petropars Limited (PPL).
In conformity with the LoU signed to this end, TOTAL of France, as the Leader of Consortium, owns 50.1% of the shares while CNCP of China and Petropars own 30% and 19.9% respectively.
Minster of Petroleum: Petropars Will Be Promoted to a Higher Status with the LoU Signed
With the agreement made for cooperation at South Pars Gas Field between the National Iranian Oil Company (NIOC) and TOTAL of France, the Minster of Petroleum expressed hope that foreign and international companies would feel more certain and optimistic to make investments in Iran’s oil industries.
In the course of the ceremony held for signing of the LoU for development of Phase 11 of South Pars Gas Field, the Minster of Petroleum stated “It is expected that some 70% of the value of the activities and operations required for development of Phase 11, which will be worth some USD 3.5 billion, will be carried out by Iranian companies.”
The Minister stated that he himself established and commenced Petropars as a General Contractor (GC) in the field of oil industries and added, “Included among the aims and objectives set for implementation of new oil contracts is the formation and promotion of Iranian companies active in oil and explorations and production. He went on to comment “Out of the 11 Iranian companies which were found qualified and competent for exploration and production, even if only 2 companies turn into promising ones competent in exploration and production, a conspicuous accomplishment has been made.”
Noting that Petropars, as the Iranian partner of TOTAL, owns almost 20% of the shares for development of Phase 11, the Petroleum Minister commented “With this LoU signed, Petropars will be promoted to a benchmark status and a higher position. Hence, Petropars should take advantage of this opportunity to transfer technologies in different sections including but not limited to project management and reservoir management.”
NIOC Deputy Managing Director: Maximum Utilization of Domestic Iranian Capability for Development of Phase 11 of South Pars Gas Field
In the course of the ceremony held for signing of the LoU, NIOC Deputy Managing Director for Development and Engineering commented “Included among the outstanding features of the project for development of Phase 11 of South Pars Gas Field are aggregation and centralization of some 70% of developmental activities in Iran and engagement and recruitment of some 95% of the workforce from among Iranian workforce, all of which are clear representations of Resistance Economy.”
On the compatibility and conformity of the policies set by the Petroleum Ministry for implementation of new oil contracts with the policies and guidelines notified by the Supreme Leader of Islamic Revolution and stipulated in the text of the 6th Development Plan as well as the Resistance Economy, Dr Manouchehri stated “Included among the landmark characteristics and outstanding features stipulated for development of Phase 11 within the scheme of new oil contracts are maximum utilization of domestic Iranian workforce as well as the execution of about 70% of developmental activities in Iran.”
TOTAL’s Middle East Desk Manager, the Middle East Manager of Chinese National Company for Petroleum and the Managing Director of Petropars Limited (PPL) were among the keynote speakers.
Referring to the outstanding role played by Petropars in development of South Pars Gas Field, Dr Akbari commented “Petropars has so far participated in development of 11 phases of South Pars Gas Field out of which 6 phases were developed jointly with the cooperation of international companies, while 5 phases were developed independently by Petropars.”
He went on to add “Presently, Phase 19 is under development and three Gas Trains of the Onshore Refinery have already been completed and commissioned. Consequently, the gas and LNG so produced are being utilized.”
The Manging Director of Petropars Limited expressed his pleasure saying that after so many rounds of talks and negotiations, Petropars has been selected as the partner of TOTAL of France and Chinese National Company for Petroleum for development of Phase 11 of South Pars.
It is worth mentioning that upon completion of development of Phase 11 of South Pars, production capacity of Iran out of this gas field which is jointly owned by Qatar, will increase by 56 million cubic meters on a daily.