Iran signs 1st IPC with France Total

News ID: 4020526 -
TEHRAN, Jul. 03 (MNA) – Iran has signed a development deal with France’s Total for investment in Phase 11 of South Pars Gas Field as envisaged in the new model of oil contracts, dubbed as the Iran Petroleum Contract (IPC).

The first Iran’s oil contract was signed between National Iranian Oil Company (NIOC) and France’s Total on Monday in Tehran, during a ceremony attended by Iranian Oil Minister Bijan Zanganeh, Total CEO Patrick Pouyanné, a representative from China National Petroleum Corporation (CNPC) and Petropars.

During the signing ceremony, NIOC managing director Ali Kardor said $2.4 billion foreign capital will be invested in the first phase of the development contract. The contract will be valid for a 20-year period during which 335 billion cubic meters of rich gas will be harvested from Phase 11 of South Pars Gas Field.

According to Kardor, the value of the whole harvested gas will amount to $23 billion.

This is the first IPC contract signed in Iran. Iran Petroleum Contract (IPC) is the latest Iranian oil contract which is a promoted as a hybrid model of a risked service contract (RSC) featuring minimum contractual work commitment, production plateau, unit Opex, fee per barrel, and the speed of cost recovery. Technology transfer and building local capacities are among the strategic objectives of the IPC.

Kardor further expressed hope that the remaining  provisions of the contracts will undergo a smooth implementation. 

MS/4020465

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