Chinese state-run oil and gas company CNPC has replaced the French company Total on the South Pars field Phase 11 (SP11) in the Persian Gulf (Iran). Total failed to secure a special project waiver from US sanctions against Iran and announced its withdrawal from the project in July 2018, resulting in a loss worth US$40m. Even though CNPC has taken over the project, works have not begun so far and talks still need to be held regarding the start of operations.
In July 2017, a consortium led by Total and CNPC signed a contract with the National Iranian Oil Company (NIOC) for the development of SP11, which was expected to be operated by Total (50.1%), in partnership with Petropars (100% subsidiary of NIOC, 19.9%), and the Chinese state-held oil and gas company CNPC (30%).
The South Pars / North Dome gas field is the largest in the world and is shared between Iran and Qatar. Its development on the Iranian side is divided into about 30 phases, 25 of which are active now. Phases 1-10 are intended for domestic consumption and injection into Iranian oil fields, while gas from the other phases should be exported. Phase 11 is expected to have a production capacity of 2 bcf/d (over 56 mcm/d or 400,000 boe/d) as of 2021.