July 4, 2017 / 8:59 AM / 3 years ago

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

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

“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,” the managing director of Iran’s National Petrochemical Company (NPC) was quoted as saying on Tuesday 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 Monday 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 Monday 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.

Reporting by Bozorgmehr Sharafedin, editing by Louise Heavens

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