France's Total interested in Iran LNG project
France's Total has voiced interest in participating in the stalled Iran LNG project, Iran’s oil minister Bijan Namdar Zanganeh said. “Iran is planning to provide Total with the necessary information. We have not agreed to transfer the project to Total, but the French company will just study the project,” Shana news agency quoted Zanganeh as saying on February 6.
Investors are interested again in Iran, with the lifting of some sanctions following its compliance with UN demands related to its nuclear programme. European imports of Iranian crude are already up by 300,000 b/d, according to Zanganeh.
Iran started the 10mn metric tons/year Iran LNG project, spending $2.5bn on it, but international sanctions blocked the work, so the project is only half done. If the construction restarts, the first Iranian LNG could go to market in 2018, Energy International Risk Assessment reported on September 7. Total was dismissed from Iran’s South Pars gas field phase 11 in 2009.
Zanganeh also said that the letter of intent signed in Paris last month by Total and the National Iranian Oil Company would take effect February 16. “As per a contract signed between National Iranian Oil Company and Total, the French company will buy 160,000 barrels/d Iranian crude oil,” the minister said.
Total is also ready to invest in Iran’s South Azadegan oilfield, he added.
Zanganeh also said Italy's Eni was interested in buying 100,000 b/d of crude from Iran and its representatives would visit Tehran in near future to discuss the contract.
He said that Italian refiner Saras was interested in buying 60-70,000 b/d of crude from Iran.
“Eni and Saras both were among buyers of the Iranian crude before the sanctions. Turkey was the sole buyer of Iranian crude during the sanctions, importing 100,000 b/d. Iran's crude oil sales to Europe after the lifting of the sanctions have increased by 300,000 b/d,” Zanganeh said.
Eni has also proposed investing $4bn in the development of Iran’s South Pars gas field Phase 11, saying it will take the phase 36 months to start early production.
The Italian company developed phases 4 and 5 of the South Pars gas field as well as two phases of Darkhovin oilfield. It has shown interest in developing Iran’s North Pars gas field and also the third phase of the Darkhovin oilfield.
Iran desk