Iran oil min.:

No compensation for Total if it fails to invest in Iran gas project

TEHRAN (defapress) – Iranian Minister of Petroleum Bijan Zangeneh says Iran will undergo no damages if the French energy major, Total, fails to invest 500 million dollars in a major gas project in Iran by mid-2019.

News ID: 68323

Date: 28 January 2018 - 09:47

“If the French company, Total, fails to bankroll at least $500 million in the South Pars 11 project by mid-2019, the Iranian Ministry of Petroleum would be allowed to cancel the contract and pay not damages which is the most important guarantee in the deal,” Iranian Oil Minister was quoted as saying by oil ministry news website SHANA.

"Total has not so far revealed any signs it is planning to pull out of the consortium of South Pars Phase 11, Zangeneh said during a televised interview on Saturday night.

He said the tenders regarding the project’s development have been held except for the ones that concern its drilling section, adding over 80% of the value of the contracts about the project have been entrusted to Iranian companies which mean technologies will be transferred to the Iranian contractors.

With regard to Farzad B gas field, Zanganeh said “in order to study the fields of Farzad A and B, North Pars and Kish Gas Fields, Iran has signed a memorandum of understanding (MoU) with Gazprom, and we recently signed a memorandum of understanding with the Russian company for the study of Iran LNG project.”

The Russian firm shall submit the result of its studies about the four gas fields by late March, the official said.