Total nears deal to invest up to $2 bln Iran’s petrochemical industry

LONDON-Reuters

Total and Iran have reached a preliminary agreement to build three petrochemical plants in a deal that if finalized could see the French oil major investing up to $2 billion in Iran, an Iranian oil official said on July 4.

“In the latest talks, the two sides have reached agreement for construction of petrochemical plants with the total capacity of 2.2 million tons of petrochemical and polymer products per year,” the managing director of Iran’s National Petrochemical Company (NPC) was quoted as saying on July 4 by SHANA.

“We predict that Total would invest $1.5 to $2 billion in Iran’s petrochemical industry if we reach final agreement,” Marzieh Shahdaei added.

France’s Total signed a deal with Tehran on July 3 to develop phase 11 of Iran’s South Pars, the world’s largest gas field, marking the first major Western energy investment in the Islamic Republic since the lifting of sanctions against it.

Iranian deputy oil minister, Amir Hossein Zamaninia said on July 3 that Iran and Total have held “positive talks” to cooperate in petrochemicals but added that the deal was not final.

An oil official said in January that Iran plans to build 25 petrochemical plants and is currently seeking $32 billion in foreign investment to fund projects.