French oil major Total plans to make a final investment decision (FID) on a $2b gas project in Iran by the summer, but the decision hinges on the renewal of US sanctions waivers, Reuters reported.

The French firm was the first Western energy company to sign a major deal with Tehran since the previous lifting of international sanctions against Iran.

Its key project aims to develop South Pars 11, which is part of the world’s largest gas field and will have a production capacity of 1.8bcf/d. Total’s CEO, Patrick Pouyanne, said South Pars 11 will be among a couple of projects to be approved by the company to start by the summer, if nothing is modified with regards to the sanctions. Total will operate with a 50.1% interest, in partnership with NIOC subsidiary Petropars and Chinese state-owned oil and gas company CNPC.

In addition, Total is currently in talks with a Iranian officials on developing further upstream oil projects in the country, according to Offshore. National Iranian Oil Co’s (NIOC) Deputy for Development and Engineering, Gholamreza Manouchehri, said discussions extend to manufacturing of industrial equipment, drilling, and offshore services, and other engineering services.

 

Manouchehri said NIOC was seeking to promote the drilling capabilities of Iranian rigs as well as cooperation between Iranian companies and French partners to improve the quality, speed, and services of Iranian drilling projects.