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Feb 17 2010

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Total Eyes More Investment

French oil giant Total said it is determined to invest in the Islamic Republic.
"The balance of supply and demand in the world, notably for gas, depends also on Iran," Christophe de Margerie, Total's chief executive, said in comments published in Le Monde newspaper.
Margerie noted that Total plans to invest 13 billion euros this year and added that it has its eye on Iran's gas reserves, despite sanctions and international pressure on the Islamic Republic over its nuclear activities.
"We would like to go there but we cannot. Total is actively attentive (to Iran), it is normal to maintain relations there which will allow us, when the time comes, to sign contracts," he said.
Meanwhile, China National Petroleum Corporation (CNPC) plans to begin drilling in Phase 11 of South Pars gas field in March to evaluate reserves.
In June, Iran signed a $4.7-billion deal with CNPC for the development of the mega-project after France's Total failed to meet a deadline set by Tehran to reevaluate negotiations for the venture.
"The real work will start soon after the Chinese New Year holiday," said an official familiar with CNPC's international operations. "CNPC has made it a distinctive strategy: to gain a foothold in countries with top reserve bases. Iraq and Iran are on top of the list."
A senior Iranian oil official said Iran is ready to provide Switzerland with about one million cubic meters of natural gas per day.
"Iran is ready to start gas exports to this European country based on the contract," Managing Director of National Iranian Oil Company Seifollah Jashnsaz told Mehr News Agency.
National Iranian Gas Export Company and Switzerland's Elektrizitaetsgesellschaft Laufenburg signed a 25-year deal in March 2008 for the delivery of over 5 billion cubic meters of gas per year. The deal is aimed at reducing Bern's dependency on Russian gas.
Jashnsaz added that Switzerland and Turkey are in talks to pave the way for the delivery of Iranian gas.
In the first phase, Iran will export 1.5 billion cubic meters per year to Switzerland, which will be increased to an annual 4 billion cubic meters by 2012.

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