Iran and Total reach agreement for $2 billion petrochemical investment

Iran and Total reach agreement for $2 billion petrochemical investment

Total (LSE:TTA) has struck a preliminary agreement with Iran to build three petrochemical plants in a deal which could see the French oil major investing up to US$2 billion in the Middle Eastern country.

Confirmation of the investment agreement was provided by a senior Iranian industry official in the national oil ministry’s news agency SHANA.

Marzieh Shahdaei, the managing director of Iran’s National Petrochemical Company (NPC), said: “In the latest talks, the two sides have reached agreement for construction of petrochemical plants with the total capacity of 2.2 million tonnes of petrochemical and polymer products per year.”

Meanwhile, a spokesperson for Total also confirmed that the two companies are currently finalising an in-depth study of an ethane-based project, whose figures have to be fine-tuned.

Total’s investment in these Iranian petrochemical projects comes in close succession to its decision to go ahead with the phase 11 development project for Iran’s South Pars offshore gas field.

The French energy giant’s investment was the first of such by any oil major since international sanctions in Iran were eased last year.

South Pars is part of the world’s largest gas field, which straddles the border with neighbouring Qatar.