China National Petroleum Corporation is deferring its decision on the development of Iran's giant South Pars Gas Field Phase 11in the Persian Gulf as it has not started any operations yet, the deputy oil minister for international affairs said.
"After canceling its agreement to develop the field, the French energy company Total submitted the project's documents to its partner, CNPC, last month. However, CNPC has done nothing so far," Amir Hossein Zamaninia was quoted as saying by ISNA.
Several meetings were held between the two oil majors to discuss the transition details.
CNPC had said earlier that it needed time to study the new conditions and inform Iran about its final decision whether or not it would take the project. "The National Iranian Oil Company has received no response yet."
The senior official said, "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 is no change in the terms and conditions of the agreement.
Zamaninia noted that Total's exit was linked to the mounting US pressure and new sanctions that are forcing international firms to walk away from Iran.
Iran has the world's largest proven offshore natural gas resources.
Undertaking the major project with a 50.1% stake, Total had partnered with China's CNPC (30%) and Iran's Petropars (19.9%).
The three companies signed a $4.8-billion deal last July and Total became the first major western energy company to invest in Iran’s oil sector after the sanctions over Iran’s nuclear energy program were eased in 2016. Iran signed a landmark deal with the six world powers (five permanent members of the UN Security Council plus Germany) a year earlier that led to sanctions relief and the curbing of Iran’s nuclear program.
CNPC has been active in Iran since 2004 offering oil, gas and oil-field services.
In 2016, CNPC and Chinese state-owned energy giant Sinopec Group were presented with an ultimatum by the NIOC due to their procrastination to provide the company with much-needed technical details and schedule to develop the second phase of Yadavaran and North Azadegan Oilfields shared with Iraq.
In 2014, Iran's Oil Ministry formally revoked the $ 2.5 billion development contract from CNPC due to a five-year delay and the company's pattern of procrastination to develop South Azadegan Oilfield in Khuzestan Province.
