Iran, France to sign $2.7b gas deal Wednesday

TEHRAN (Fars News Agency)- Despite the U.S. sanctions and business restriction on Iran, the coming Wednesday is to witness the inking of a finance agreement between National Iranian Oil Company (NIOC) and French Societe General Bank for development plans in oil- and gas-rich southern Iran.

The $2.7b figure is going to finance the development projects at phases 17 and 18 of the South Pars Oil and Gas Field and the capital return will be satisfied by the revenues coming from gas and condensate sales, Tehran Times said.

Two drilling platforms equipped with water treatment units will bore 22 offshore development wells and two 32-inch pipelines are going to transfer the gas to onshore installations for refining and processing. Construction of flare stands and bridges, testing the wells and related services are among the works to be performed in these operations.

Phases 17 and 18 are anticipated to offer 56 million cubic meters of gas, 400 tons of sulfur and 80,000 barrels of condensates per day while the ethane and liquid gas production should hit one million tons each per annum.