News ID: 196772
Published: 0221 GMT July 16, 2017

Iran provides further details of gas deal with Total

Iran provides further details of gas deal with Total

Iran has given further details of a $4.8-billion deal with a consortium, headed by France's Total.

Deputy Managing Director of National Iranian Oil Company (NIOC) for Engineering and Development Affairs Gholamreza Manouchehri said that the interest rate of Total-lead consortium's investment is 2.5 percent, while the ratio, offered by National Development Fund is 7-8 percent, Trend News Agency reported.

"In total, about $1 billion would be paid as tax to Iranian government, based on agreement as well," he said adding that investment return for the deal is 10 years starting after the inauguration of the first stage.

The first and second stages of the project would become operational in 40 months and 60 months respectively.

The project's first stage will cost $2.479 billion, said Zanganeh on July 12, adding that the project will include the drilling of 30 wells, construction of two 1,500-ton platforms, as well as laying a 250-km underwater pipeline.

The second stage involves the construction of a 20,000-ton platform and its installation at Phase 11 to prevent a decline in gas output level after falling reservoir pressure in 2023.

He said that the period of investment return of the second stage would also be 10-year after the commissioning of heavy platform (2023-33).

According to the $4.8-billion deal, some 335 bcm of methane, 290 mbd of gas condensate, 26 million tons of ethane, propane and butane, as well as 2 million tons of sulphur are expected to be produced from Phase 11, totaling $84 billion based on a price of $50 per barrel of oil, of which 15 percent or $12 billion is expected to be paid to the consortium in 20 years.

Total has a 51-percent share in the project, while China National Petroleum Corporation (CNPC) and local Petropars Ltd. owns 30 percent and 19.9 percent, respectively.

Manouchehri said that Total should invest $500 million in two years and in case it wants to withdraw from the project due to possible sanctions or other problems, Iran will only pay the principal gradually after the project becomes operational without taking into account any interest or profits.

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