In a recent announcementTotal has confirmed the signature of a 4,8 Billions USD contract with the National Iranian Oil Company (NIOC) 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. The produced gas will supply the Iranian domestic market starting in 2021.
This 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.
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.
Since the November 2016 HoA signature, Total has been conducting engineering studies on behalf of the consortium and initiated calls for tender in order to award the contracts required to develop the project by the end of the year.
This once again shows that Total is eager to develop its Project Portfolio and deliver long term growth as well as stability for its investors. The Loyd Consulting Group is supporting Total Projects all around the world through its LCG Digital Risk Management Solutions and through Management Consulting.
Our solutions help Total Projects staff develop a Risk Leadership Mindset allowing them to take the right decision at the right time and for the right reason by ensuring that all Threats and Opportunities are properly identified, assessed, reported and treated. This also creates the necessary engagement throughout the project team by making people aware of their intrinsic value for the organization.
This cultural change has allowed Total to deliver its projects on time and within cost.