The agreement also organises the relationship between Pars LNG and Block 11 of the South Pars project (SP11), jointly owned by Total (60%) and Petronas (40%), which will supply LNG to the plant.
But the deal still needs the approval of the Iranian government.
According to Total, the agreement will allow the start of engineering studies for the plant and the SP11 development. The studies are due to begin next year with the aim of launching the JV by late 2005 or early 2006.
Total said its expertise in the LNG sector, together with the experiences of its other partners, would lead to the building of a “successful international project for the growing worldwide gas market”.
NIOC holds the majority stake in Pars LNG with a 50% share. Total holds 30% and the balance is held by Petronas. Once completed and operational, the facility will have an initial capacity of two trains of 5 million tons of LNG per year each.
