TEHRAN, July 15 (Shana) First Vice President Eshaq Jahangiri says development of Phase 11 of the supergiant South Pars Gas Field by a consortium including Frances Total is in line with Irans progress.
Addressing the opening ceremony of Iran National Museum, the official said Totals investment in the project is only $5b while Iran needs at least 200 billion dollars in fresh investments for renovating and developing its oil and gas sector.
The National Iranian Oil Company (NIOC) has signed a contract with a consortium comprising Total, Chinas CNPC International and Petropars Company for developing the project in Persian Gulf waters.
Jahangiri said the deal is an indication of the failure of the sanctions and the US, saying anyone interested in development of Iran must be happy about the contracts signature.
South Pars Phase 11 is being developed for production of 2 million cubic meters of natural gas.
Total will operate the project with a 50.1% interest alongside Petropars (19.9%) and the CNPC (30%). The consortium is expected to produce around 50 million cubic meters of gas per day from the offshore reserves of SP. 11 project.
During 20 years of gas extraction under the contract, an estimated volume of 335 billion cubic meters of rich, sour natural gas will be produced from the phase with 290 million barrels of gas condensate, 14 million tons of liquefied petroleum gas (LPG), 12 million tons of ethane and 2 million tons of sulfur as well as 315 billion cubic meters of light sweet gas.
The energy carriers to be produced by the project are estimated to be valued at more than $54b considering the current prices.
Preliminary production from the project will begin from the project 40 months after signature of the contract. Considering the intricacy of construction of pressure boosting facilities, 36 months has been allocated to studies and 60 months for platform construction under the contract.