Total to sign Iran gas deal, biggest since sanctions lifted

– Return to Iran –

Monday’s signing will mark Total’s return to Iran, which has the second-largest gas reserves and fourth-largest oil reserves in the world.

The French firm led development of phases two and three of South Pars in the 1990s and had signed up to develop phase 11 back in 2009.

But it was forced to abandon its projects in Iran in 2012 when France joined European Union partners in imposing sanctions, including an oil embargo, over the country’s nuclear programme.

Iran’s oil officials have been keen to attract Western investment and know-how to improve the country’s outdated energy infrastructure.

Iran has also signed preliminary agreements with Shell and Russia’s Gazprom to develop oil and gas projects.

Such deals have not been without controversy in Iran, which has bitter memories of exploitation and interventions driven by foreign oil interests.

Conservatives criticised the move to award tenders to foreign firms last year.

That forced the oil ministry to confirm that domestic conglomerates, including one controlled by the elite Revolutionary Guards, would be allowed to compete.

The first stage of the new 20-year project at South Pars will cost around $2 billion and consist of 30 wells and two well-head platforms connected to existing onshore treatment facilities.

The site will eventually pump 50.9 million cubic metres (1.8 billion cubic feet) of gas per day into Iran’s national grid.