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Oil Minister Bijan Namdar Zanganeh said serious negotiations are underway to develop Iran`s hydrocarbon deposits. including Azadegan. Yadavaran and Yaran. major oilfields in the oil-rich Khuzestan Province.
`Top priority has been assigned to developing joint oil and gas fields because our neighbors are drawing from the underground resources at a rapid pace.` Zanganeh said on the sidelines of a Cabinet meeting in Tehran on Wednesday. IRNA reported.
Pointing to the newly-concluded contract between the National Iranian Oil Company and French energy giant Total S.A. to develop Phase 11 of the South Pars Gas Field in the Persian Gulf. Zanganeh said. `As long as they have not undertaken the whole project. including onshore and offshore sectors. no money will be paid to them. Based on the deal`s terms. Total`s revenue depends on the field`s production.`
Rejecting claims that the French giant would reap as much as 75% of the field`s profit. the minister said the company will transfer $6 billion to Iran. of which $1 billion will be paid as tax.
`Their investment return during 20 years will amount to a maximum of $12 billion. Iran`s revenue from South Pars Phase 11 is estimated to reach $84 billion. as long as oil prices do not fall below $50 a barrel.` Zanganeh said.
