China’s CNPC has joined France’s Total in finally pulling out of the planned Phase-11 development of Iran’s South Pars gas field (see map). The $4.8bn July 2017 contract was highly touted as the first major post-sanctions award to foreign firms (MEES, 7 July 2017). But, unfortunately for Tehran, it failed to spur further awards and ultimately has come to naught thanks to the return of sanctions.
Under the initial agreement Total had a 50.1% stake, CNPC 30%, and domestic firm Petropars the remaining 19.9%. Total withdrew in August 2018 (MEES, 24 August 2018) and with CNPC now officially gone, Petropars is the sole remaining partner. (CONTINUED - 685 WORDS)