Total American depository shares were slightly higher on Tuesday after the oil company said it struck a deal with the National Iranian Oil Company to develop phase 11 of South Pars, the world’s largest gas field.
The project will have a production capacity of 1.8 billion cubic feet per day, or 370,000 barrels of oil equivalent per day. The gas will be fed into Iran’s gas network.
Total said it will operate the project with a 50.1% interest while NIOC’s subsidiary Petropars will own 19.9% and China’s state-owned oil and gas company CNPC will own 30%.
Separately, the Financial Times reported that Total, Royal Dutch Shell (RDS.A, RDS.B), ExxonMobil (XOM), Eni (E), Chevron (CVX) have reached a settlement with Nigeria, resolving a long dispute, under which the oil companies will be paid $5 billion to cover exploration and production costs in the country.
The settlement relates to costs incurred between 2010 and 2015. The report cited Nigeria’s minister for state for petroleum resources, Emmanuel Ibe Kachikwu, as saying that the deal has been accepted by the five companies.