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Iran will sign a new contract to develop its South Pars gas field with France's Total and China's CNPC on Monday, Reuters reported, citing an Iranian oil ministry official.
The deal will be the first major Western energy investment in to Iran since sanctions against the country were lifted.
"The international contract for development of Phase 11 of South Pars in the framework of IPC (Iranian Petroleum Contract) will be signed on Monday, July 3, at 14:30, at a ceremony in Tehran attended by Iranian oil minister Zanganeh and senior officials from France’s Total, China’s CNPCI and Iran's Petropars," the Iranian oil ministry official was quoted as saying.
Total holds a 50.1 percent interest in the South Pars project, while China National Petroleum Corporation (CNPC) owns 30 percent. Iran's Petropars has the remaining 19.9 percent.
The offshore field, shared between Iran and Qatar, was first developed in the 1990s and Total was one of the biggest investors until international sanctions were imposed on Iran in 2006.
The French firm has decided to return and develop Phase 11 of the South Pars project, which will cost up to $5 billion, the news agency said.
Last month, Total's chief executive Patrick Pouyanne had said that the group could make an initial $1 billion investment in Iran.
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