Zangeneh: Foreign investment necessary for oil industry boom

IRNA – As a pioneering sector, oil industry could take advantage of foreign investment, Petroleum Minister Bijan Zangeneh said, addressing Majlis (Parliament) open session on Wednesday.

Commenting on the deal signed with Total Company to develop phase 11 of South Pars gas field, he pointed to management and timing as important factors.

‘We have to start the job somewhere and attract foreign investment so that the country commence a period of economic momentum,’ said the minister.

In response to certain criticisms expressed by some parties against the deal with Total, Zangeneh said the contract has been approved by a seven-member committee.

The committee consists of four former ministers and experts, representatives of Presidential Office and Supreme National Security Council.

National Iranian Oil Company (NIOC), Total, CNPC and Petropars on Monday, July 3, signed a $4.8bn contract for development of South Pars Gas Field phase 11.

Total will operate the SP11 project with a 50.1% interest, while Iranian Petropars Company will have a share of 19.9% and the Chinese CNPC 30%.

The contract was signed by the NIOC Chief Ali Kardor, Petropars Head Hamid Akbari, Total’s Pouyanne and CNPC CEO in the presence of Iran’s Minister of Petroleum Bijan Zangeneh and the French and Chinese ambassadors to Tehran as well as parliamentary Energy Committee members and senior Petroleum Ministry officials.

Iran’s annual petrochemical production capacity stands at 62 million tons and by the end of this Iranian year (March 20, 2018), the figure will reach 72 million tons when six new projects come into stream. The total value of net sale of the products will rise up to $17 billion.

National Iranian Oil Company (NIOC) and an international consortium, led by French Total, signed Iran’s new oil contract in the post-sanction era for development of the phase 11 of South Pars.

Under the $4.8 billion gas deal, 56 million cubic meters of gas will be added to Iran’s capacity to extract gas from South Pars gas field common with Qatar.