Total Seeking to Buy Stake in Iranian LNG Project
French oil giant Total held talks with Iranian officials about several projects in the country in 2016, notably a 10 million tonnes per year liquefied natural gas project (LNG), Reuters reported.
It has signed an agreement with Iranian authorities for a 50 per cent stake in Iran’s South Pars gas field project which will developed at an investment of $4 billion.
Sources told Reuters in February that Total was in talks to buy a multi-billion dollar stake in Iran's partly-built LNG export facility.
Total signed a preliminary deal for the South Pars project last year, becoming the first Western oil major to sign an energy agreement after the European Union and the United States eased sanctions against Iran.
In a filing to the US Securities and Exchange Commission, Total said the South Pars 11 project would require investment of about $4 billion, with the French firm financing 50.1 percent with equity contributions and payments in non-US currency.
Total said in its filing that it discussed other projects with Iranian officials in 2016 and carried out technical reviews, including for investment in a 10 million ton-per-year liquefied natural gas (LNG) plant at Tombak on the Persian Gulf coast.
In February, sources said Total was in talks to buy a stake in the partly-built LNG plant at the port.
The French firm also said in its filing that it discussed plans to invest in the South Azadegan oil field.
Total said it resumed trading with Iran in February 2016, and bought about 50 million barrels of crude for about $1.9 billion last year, most of it to supply its refineries.
