US sanctions on Iran give China lead in world’s top gas field

CNCP will become lead operating partner in the project, state-run Islamic Republic News Agency said, citing Mohammad Mostafavi, National Iranian Oil Company investments and business head. Terms of the contract have not yet officially changed, according to Shana, the oil ministry

TEHRAN: China National Petroleum Corp (CNPC) is expected to take the lead on a US$5bil project to develop Iran’s share of the world’s biggest gas deposit, taking over from France’s Total SA, which halted operations after US President Donald Trump reimposed sanctions on the Islamic republic.

State-owned CNPC, which had joined an original consortium involving Total and Iran’s Petropars Ltd in 2016 to develop Phase 11 of the South Pars Gas field in the Persian Gulf, is set to increase its stake in the project from the current 30%. Total had originally agreed to take a 50.1% stake in the development.