National Iranian Oil Company (NIOC) has signed a €42-million ($50 million) contract with France's Sofregaz for the recovery of flare gas at a refinery in South Pars, a report said.

Iran's Samin company is also a signatory to the deal, which is expected to take 30 months to complete, Iran Daily reported, citing Reuters.

France's Total signed a deal with Tehran in July to develop Phase 2 of South Pars, taking a 50.1 per cent stake, alongside Chinese state-owned oil and gas company CNPC with 30 per cent, and National Iranian Oil Co. subsidiary Petropars with 19.9 per cent.

The project will cost up to $5 billion and production is expected to start within 40 months, Iran's Oil Ministry said in a statement at the time.