France’s Total and China National Petroleum Corp are set to sign the first big agreement with Iran for development of its gasfields since the loosening of international sanctions in January.
Iran’s oil ministry said it expected to finalise the preliminary deal, involving development of the South Pars gasfield, today. It would be a breakthrough in Tehran’s efforts to attract renewed investment in its outdated energy infrastructure and unlock some of the world’s biggest oil and gas reserves.
For Total, the deal would open the way for its return to Iran six years after the French oil major left the country amid tension over Tehran’s nuclear arms project. It would highlight Total’s hunt for sources of growth in spite of persistent weakness in the oil market.