Iran denies Total's expulsion from South Pars

Tehran: Iran has not stopped talks with France's Total over investment in the country's Phase II of the South Pars gas field, the semi-official Mehr news agency reported on Sunday.

Deputy head of the National Iranian Oil Company (NIOC) Hojjatollah Ganimifard had told state television on Saturday that Iran had excluded Total from Pphase II of its giant South Pars gas field.

However, head of NIOC Seifollah Jashnsaz said he had no knowledge about reports on Total being dismissed from the project in southern Iran.

"Talks took place between Total and NIOC in Tehran last week," Jashnsaz told Mehr.

Another Iranian official also told Mehr that Total was still interested in the project.

"Total is interested to take part in the Pphase II of the South Pars and talks with Total are going on," said Reza Kasaizadeh, head of National Iranian Gas Co.

Total had a memorandum of understanding (MOU) with NIOC to develop Phase II but the project has been overshadowed by haggling over contract terms.

In June the official Iranian news agency IRNA said Tehran had signed a $4.7 billion (Dh17.2 billion) contract with China National Petroleum Corporation (CNPC) to help develop Phase II of South Pars, replacing Total, which it had accused of delays.

However, later Iran said it had resumed talks with the French energy firm on its participation in Phase II after a gap of several months.

Iran has the world's second largest gas reserves, almost 16 per cent of the world's total, but currently has no major net exports.