Tehran: Oil Ministry officials said that French energy giant ‘Total’ is to sign a contract worth close to $5bn (£3.8bn) to develop an offshore gas field in the Gulf. Which is estimated to be the biggest foreign deal, since most economic relationships and sanctions against the country were lifted in 2016.
As per to a report by BBC, the deal to develop South Pars gas field would be signed on Monday in Tehran, with Total getting a 50.1% stake, the Ministry officials said. CNPC of China would hold a 30% stake and Iran’s Petropars will get 19.9%.
France’s Total was planning to sign the contract several months ago, but they waited and see if the Trump administration in the US would re-impose sanctions on Tehran.
The offshore field was developed in the 1990s and was shared between Iran and Qatar.
Total was one of the biggest investors in Iran before international sanctions were imposed in 2006 over suspicions that the country was trying to develop nuclear arms.
Total’s boss Patrick Pouyanne in June had expressed that the firm was ready to make a starting investment of $1bn in Iran, the third largest producer in oil body Opec.