Iran signs $4.8bn gas deal led by France’s Total

Iran signed a $4.8bn provisional deal with a consortium led by France’s Total to develop part of a massive gas field, the first major energy agreement since the landmark nuclear accord, British newspaper the Financial Times reported on Tuesday. 

The agreement has raised hopes in Tehran that it will open the way for more foreign investments to be attracted to various industrial and economic sectors after lifting of nuclear-related sanctions this year.

“This is an icebreaker and we shall see more multi-billion-dollar oil and gas contracts with other companies including Russians and Europeans soon,” Amir-Hossein Zamaninia, Iran’s deputy oil minister for international affairs said.

“The next agreement might be in a few weeks,” he added without giving further details.

Total will be joined by China’s CNPC and Iran’s Petropars to develop Phase 11 of South Pars, the world’s largest gas field shared between Iran and Qatar.

The three companies signed a Heads of agreement with the National Iranian Oil Company on Tuesday morning Tehran time. 

The final contract which is expected to be signed by the next three months will be under the controversial Iran Petroleum Contract.

Iran’s oil minister, Bijan Namdar Zanganeh, thanked Total for “always being a pioneer and coming back to Iran at a difficult time”. He added at the signing ceremony, “I hope this will allay concerns of other companies so that they can enter Iran’s market quickly.”