No banking problem with Total deal: Petroleum Min

IRNA – Petroleum Minister Bijan Zangeneh said there is no banking problem with implementation of Total deal to develop the phase 11 of South Pars Oil Field.

Total and the members of the consortium composed of France’s Total, China National Petroleum Corporation (CNPC) and Iran’s Petropars will pay contractors with no problem, Zanganeh told Islamic Republic News Agency (IRNA) on Saturday.

The payments would not enter Iran’s financial system at all, he added.

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

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

The 4.8 billion-dollar contract is the first major gas and oil agreement since anti-Iran sanctions relief after implementation of the historic nuclear agreement between Iran and world major powers (the United Nations Security council permanent members plus Germany) in 2015.

The project, when completed, will add 56 million cubic meters perday to Iran’s share of gas in the joint South Pars Oil Field with Qatar.