Terminating its contract to develop Iran's giant South Pars Gas Field Phase 11, the French energy company Total has submitted the project's tender and technical documents to its partner, China National Petroleum Corp., the National Iranian Oil Company's managing director said.
"Technical meetings are underway between the two oil majors to discuss transition details," Ali Kardor was quoted as saying by ISNA.
CNPC has announced that it needs time to scrutinize the documents most of which were drawn up based on Total's financial and technological capacities.
"NIOC is waiting for the CNPC decision on whether it will take over Total's stake in the venture worth at least $4 billion," he said, adding that there has been no change in agreement to develop the gas field off the Persian Gulf.
Kardor asserted that the French company's exit comes in the wake of new US sanctions that are forcing international firms to reconsider their deals with Tehran.
Iran has the world's largest proven offshore natural gas resources.
Operating the project with a 50.1% stake, Total was partnered by China's CNPC (30%) and Iran's Petropars (19.9%).
The three sides signed a $4.8-billion deal last July and Total became the first major western energy company to invest in the oil sector after sanctions over Iran’s nuclear energy program were lifted in 2016.
Kardor said NIOC has not been informed of an official CNPC position, but note that the Chinese giant not only has a legal right but also the technological capability to take over the project.
Total was expected to use its know-how to install 20,000-ton platforms and light compressors in South Pars. CNPC still lacks such advanced technology.
The largest offshore gas platform in South Pars weighs about 3,000 tons.
CNPC has been active in Iran since 2004 offering oil, gas and oil-field services, according to the company’s website. In 2006, it was awarded a three-year contract to provide offshore well-logging and other services in South Pars.
