The companies will sign “heads of agreement,” or non-binding accords, with the ministry to develop the South Azadegan and Yadavaran oil fields and the Kish natural gas deposit, the official said, asking not to be named as he is not authorized to brief the media. He didn’t say which company would develop which of the fields, Bloomberg reported.
The deals will be the first signed by European companies to develop Iran’s oil fields since sanctions were loosened in January under a deal to curb the Islamic Republic’s disputed nuclear program. Paris-based Total signed a $4.8 billion accord last month to develop an Iranian gas project.
Media officers at Total declined to immediately comment, and Shell representatives couldn’t be reached.