Oil giant Total, has issued tender for subcontracts for the South Pars (SP) Phase 11 gas/condensate development in the Persian Gulf, Offshore reports.
Mohammad Meshkinfam, CEO of Pars Oil and Gas Co. (POGC), told news service Shana the value of the contracts exceeds €700 million ($867 million), and that these will mostly go to Iranian contractors, the report says.
The tenders covered drilling, jackets, topsides, seabed pipeline, and offshore installation.
Last July, National Iranian Oil Co. (NIOC) signed an agreement for Phase 11 with Total in Tehran. Total has a 50.1percent operated interest, in partnership with China’s CNPC (30percent) and NIOC subsidiary Petropars (19.9percent).
SP11 will be developed in two phases. The first, expected to cost around $2 billion, will comprise 30 wells and two wellhead platforms connected to existing onshore treatment facilities by two subsea pipelines.
Depending on the reservoir conditions as production progresses, offshore compression facilities could be added, which would be a first on the South Pars field.
Since November 2016, Total has conducted engineering studies on behalf of the consortium and initiated calls for tender in order to issue Phase 1 development contracts by year-end.