Total signed a Heads of Agreement (HoA) with Iran on 8 November to develop phase 11 of South Pars gas field. Under the arrangement, Total will have a 50.1% operating stake, Chinese state firm CNPC 30% and local firm Petropars 19.9%.
This is the most concrete agreement yet between a major Western IOC and Iran since international sanctions were eased in January. Negotiations are ongoing to finalize a 20-year agreement between the partners under the framework of the newly-designed Iran Petroleum Contract (IPC). Precise details of the IPC remain under wraps, and there has been concern that revisions prompted by conservative Iranian lawmakers have reduced its attractiveness to IOCs (MEES, 21 October). (CONTINUED - 577 WORDS)