Bid & Tender
Total Eyes $2b Investment in Iran Petrochemical Sector: Dy. Min.

Date : Jul 06, 2017

Managing Director of National Petrochemical Company (NPC) Marziyeh Shahdaei says France's oil major Total is considering construction of three petrochemical plants in Iran by investing $1.5b to $2b in the projects.


Speaking on the sidelines of a signing ceremony between NIOC and a consortium comprising Total and China's CNPC for developing Phase 11 of the supergiant South Pars Gas Field, Shahdaei said talks are under way with the French company for construction of 3 petrochemical plants and if concluded the talks will lead to 2 billion dollars of investment by Total.


She said the plants will be constructed with 2.2 million tons/year of capacity for production of polymer and petrochemical products.


Marziyeh Shahdaei, who is also deputy petroleum minister in petrochemical affairs, said NPC has so far reached an agreement with Total for setting up an ethane cracker complex and a special grade polyethylene plant.


She said NPC has also reached an agreement with Total for building two polymer production complexes each with 0.5mt/y of production capacity.


French energy major Total signed a contract with the National Iranian Oil Company (NIOC) for developing phase 11 of the supergiant South Pars Gas Field in Iran on Monday.


South Pars Phase 11 is being developed for production of 2 million cubic meters of natural gas.


Total will operate the project with a 50.1% interest alongside Petropars (19.9%) and the CNPC (30%). The consortium is expected to produce around 50 million cubic meters of gas per day from the offshore reserves of SP. 11 project.


During 20 years of gas extraction under the contract, an estimated volume of 335 billion cubic meters of rich, sour natural gas will be produced from the phase with 290 million barrels of gas condensate, 14 million tons of liquefied petroleum gas (LPG), 12 million tons of ethane and 2 million tons of sulfur as well as 315 billion cubic meters of light sweet gas.


The energy carriers produced by the project will be valued at more than $54b considering the current prices.


Preliminary production from the project will begin from the project 40 months after signature of the contract. Considering the intricacy of construction of pressure boosting facilities, the contract will take 36 months for studies and 60 months for platform construction.


The project is estimated to cost $4,879 which will be settled in a 10-year period.