Chinese National Petroleum Corporation to develop 11th stage of world's largest marine gas field in Iran for $4.7 billion. France committed to project five years ago, but is delaying alliance
Doron Peskin
Published:  06.11.09, 12:39 / Ynet

China and Iran last week signed an agreement worth close to $5 billion for the 11th stage of developing the South Pars field, considered the world's largest natural gas field.
 
The deal was between Seifollah Jashnsaz, managing director of the state National Iranian Oil Company (NIOC), and the Chinese National Petroleum Corporation during the Iranian official's recent visit to China.
 
In 2004, French energy giant Total signed an agreement with the Iranian government, making it responsible for developing the project's 11th stage. However, the project's implementation has been delayed since then several times, due to what has been defined by the French as "a price hike in the development costs." In practice, however, the delay stems from the international pressure on Iran due to its nuclear aspirations.
 
Jashnsaz said after signing the contract, "We cannot wait for the Total company and therefore we signed a $4.7 million deal with the Chinese." However, the Iranian official left the door open for Total to be a partner in developing the field in the future.
 
It should be noted that the South Pars field is located both on Iranian and on Qatari territory, and is considered the single largest natural gas field in the world. The field's reserves are estimated at around 14 trillion cubic meters – about 8% of the proven gas reserves in the world. The planned production for stage 11 stands at 2 billion square feet a day.
 
Doron Peskin is head of research at Info-Prod Research (Middle East) Ltd.

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