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NIOC, Total, CNPC, Petropars Sign $4.8bn Gas Development HOA

TEHRAN, Nov 08.2016 – National Iranian Oil Company (NIOC) signed a $4.8 billion heads of agreement (HOA) deal with French Total, China National Petroleum Corp. and Iranian Petropars company on Tuesday for development of the phase 11 of South Pars joint gas field. Minister of Petroleum Bijan Zanganeh was present in the signing ceremony. Once the project is implemented, 56 million cubic meters will be added to Iran's gas extraction capacity from the field which is shared with Qatar. Under the agreement, the contractor will finance the project, thus luring billions of dollars of investment for the country. Development of phase 11 of South Pars gas field the within framework of the new model of oil contracts underlines high share of Iranian companies in various divisions of operations. Iran has pitched some 50 upstream oil and gas projects under the newly revised framework of its oil contracts that is hoped to sweeten the previous not-anymore-popular buyback deals.