A member of the Iranian Parliament said the deal National Iranian Oil Company (NIOC) has signed with France's Total will open the country to arrival of state-of-the-art technologies in oil industry.
Asadollah Ghareh Khani, who is also the spokesman of the parliament's energy committee, said the deal involves drilling of 30 offshore wells and construction and installation of 2 platforms by a consortium comprising Total, CNPC International and Iran's Petropars.
He said an investment of 12 billion dollars will be made in the project and the country will gain 82 billion dollars in revenue after the project is concluded after 20 years.
The MP described the NIOC deal with Total as good, saying the contract was signed based on the newly-devised oil contract model.
French energy major Total signed a contract with the National Iranian Oil Company (NIOC) for developing phase 11 of the supergiant South Pars Gas Field in Iran on Monday.
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 produced by the project will 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, the contract will take 36 months for studies and 60 months for platform construction.
The project is estimated to cost $4,879 which will be settled in a 10-year period.