Chief Executive of the French oil giant Total Patrick Pouyanne voiced his satisfaction over the new format of oil contract with Iran.
"The country’s new format of oil sector agreements is a real improvement," Pouyanne said on Wednesday.
He said one specific advantages was the fact that the operators would be offered remuneration based on production rather than a simple percentage of the development costs.
"It also extends over a period of 20 years rather than seven or eight. This, he said, was a real improvement. We will not go to Iran if there is not a reward which is commensurate," Pouyanne said.
Pouyanne further said his company would go ahead with the development of Iran’s South Pars Phase 11, a project which it had been negotiation with the National Iranian Oil Company (NIOC), with an initial investment of $1 billion.
In relevant remarks in late May, Chief Executive Officer (CEO) of Total said that his company is going to finalize its contract on South Pars 11 gas field development with Iran before this summer.
The US relief of sanctions has paved the way for signing of the finalized contract with Iran, added Patrick Pouyanne.
Total had declared that the final decision on agreement with Iran depends on the extension of Iran’s sanctions relief by the US government.
Pouyanne also confirmed that he had talked with Iran’s Minister of Petroleum Bijan Zangeneh on the sidelines of the 172th session of Organization of Petroleum Exporting Countries (OPEC).
The National Iranian Oil Company (NIOC) signed the new model agreement-in-principle for South Pars oil field 11 with a consortium composed of France’s Total, China National Petroleum Corporation (CNPC) and Iran’s Petropars last November.
After implementation, the 4.8-billion-dollar contract will add 56 million cubic feet of gas to the country’s production capacity per day in the world biggest gas field that Iran shares