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Iran inks flaring deal with France

Iran inks flaring deal with France
ID : N-286 Date : 2017/09/06 - 09:51

(Persia digest)- The National Iranian Oil Company (NIOC) and a consortium of France's Sofregaz and Sanat Sazeh Samin have signed a deal for recovery and consumption of flare gas at a refinery in South Pars.

The deal was signed in Tehran by Ali Mohammad Ahmadi, operator of South Pars Sustainable Development Project representing NIOC, Sofregaz Managing Director Yann Aubry Lecomte and Kourosh Ahanj, managing director of Sanat Sazeh Samin Co.

The agreement aims to curb the flaring of half a million cubic meters of natural gas on a daily basis, reduce carbon emission in the region, gather flare gas and inject it into oil and gas fields for enhanced recovery and preservation of the environment, Shana reported.

The €42m deal comes following a deal between NIOC and a consortium of Total and CNPCI for developing phase 11 of the supergiant South Pars Gas Field. 

On July 3, Iran concluded a $5.9 billion deal with a consortium led by French energy giant Total to develop and produce gas from phase 11 of the South Pars gas field, the largest gas field in the world. This deal is a major victory for Hassan Rouhani’s administration, and could pave the way for other foreign investors willing to enter the Iranian market.

With this deal, Total is the first Western company to resume its activities in Iran since the lifting of the nuclear sanctions in January 2016. Under the terms of the 20-year contract, the French multinational now holds 50.1% of the consortium, alongside state-owned oil and gas company China National Petroleum Corporation with 30%, and National Iranian Oil Co subsidiary Petropars with 19.9%. As a first step, Total will invest an initial $1 billion in the South Pars gas field, before eventually injecting $4.9 billion in the project.

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