French oil giant Total is set to reveal contract awards to oilfield equipment and services suppliers as part of its South Pars Phase 11 project development offshore Iran.
According to the Iranian news agency Shana, Mohammad Meshkinfam, CEO of Pars Oil and Gas Company (POGC) said the value of tenders for the project work was more than 700 million euros.
“Most of the contracts were awarded to Iranian companies and the name of the winners will be publicized soon,” Meshkinfam reportedly said.
The tenders were for drilling, jackets, topside, subsea pipeline, platform, and installation.
To remind, Total and the National Iranian Oil Company (NIOC) in July 2017, signed a contract for the development and production of phase 11 of South Pars (SP11), the world’s largest gas field.
The project will have a production capacity of 2 billion cubic feet per day or 400,000 barrels of oil equivalent per day including condensate and the produced gas will supply the Iranian domestic market starting in 2021, Total said last year.
The contract, which has a 20-year duration, is the first Iranian Petroleum Contract (IPC) and is based on the technical, contractual and commercial terms as per the heads of agreement signed on November 8, 2016.
Total is the operator of the SP11 project with a 50.1% interest alongside the Chinese state-owned oil and gas company CNPC (30%), and Petropars (19.9%), a wholly owned subsidiary of NIOC.
The SP11 will be developed in two phases. The first phase, with an estimated cost of around 2 billion dollars equivalent, will consist of 30 wells and 2 wellhead platforms connected to existing onshore treatment facilities by 2 subsea pipelines.
At a later stage, once required by reservoir conditions, a second phase will be launched involving the construction of offshore compression facilities, a first on the South Pars field.