Iran to buy French oil and gas company Total SA in $6 billion contract

Industry - Pavan Pandey - Nov 17,2016

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iran to buy french oil and gas company total sa in 6 billion contract

Iran announced a preparatory agreement with France multinational integrated oil and gas company Total SA for a valuation of $6 billion. Total SA is one of the seven “supermajor” oil firms in the entire world. The officials at oil and gas firms Total SA said that it would be glad to be the primary Western oil company to reach a contract with Iran. French multinational company also confirmed that the contract has not been signed as of now. This contract that would identify the earliest Western energy investment there from the time when international sanctions were lifted this year.

The Chairman and the Chief Executive officer of Total SA Mr. Patrick Pouyanne said in his statement at an Abu Dhabi petroleum meeting, “Discussions are going on and we will see if we can sign in the coming days”. Total SA has had a former participation in South Pars, one of the biggest natural gas field in the world situated in the mid of Persian Gulf between Iran and Qatar. The South Pars field contains approximately 14,000 billion cubic meters of gas, total 8 % of the world´s recognized reserves.

According to the Iron’s Oil ministry official, “under this deal, Total SA, China National Petroleum Corp. (CNPC) and Iran’s national Petropars would improve part of the South Pars field. It is still indistinct how much of the $6 billion assignment will come from Total SA, or how the French multinational company plans to escape from running afoul of American sanctions against Iran. The deal must be completed over the next six months. Total SA was one of the greatest active Western oil firms in Iran, and its officials have said they were excited about a homecoming to a country with the fourth-largest reserves of oil in the global. According to an investment consultant, “This massive agreement will enhance other corporations to do business with Iran, mainly those companies with little activity in the US.