The National Iranian Oil Company (NIOC) is in talks with France's Total for development of Phase 11 of the South Pars Gas Field, a report said.

An agreement had been reached with Total and talks were still continuing for finalising a deal, an official was quoted by Iran Daily, which cited Shana.

"There are some political matters to consider regarding the issue, but our colleagues at the Iranian Ministry of Foreign Affairs are seriously pursuing the matters through the EU and the P5+1 countries," the source said.

NIOC has signed a head of agreement (HOA) with a consortium comprising Total, CNPC and Petropars for developing the project, according to the report.