MADRID (IRNA) -- Spanish oil giant, Repsol-YPF, will soon start an oil and gas exploration and extraction project in Iran as one of the three foreign companies which were awarded the tender for development of offshore South Pars gas field in the south of the country.

According to Spanish sources, Spanish firm, Repsol-YPF, along with French TotalFinaElf and the Anglo-Dutch conglomerate, Shell, are scheduled to work on development of the SP phases 11 and 13.

The contract for development of SP phase 11 is worth more than $1.2 billion while the SP 13 is $1.5 billion.

Managing director of the state-run Pars Oil and Gas Company (POGC), which is in charge of the Persian Gulf gas field, Akbar Torkan said earlier that the Anglo-Dutch energy giant Shell, France's Total and Spanish firm Repsol will soon sign contracts with Iran to develop two phases of the Islamic republic's offshore South Pars gas field.

"The contracts will probably be signed in the current (Iranian) week," said Torkan.

The contracts are slated for the production of liquefied natural gas (LNG) for exports.

Total will be engaged in Phase 11 in a project called Pars LNG, while Shell and Repsol will be working on Phase 13 under the name Persian LNG. The firms will be operating jointly with the National Iranian Oil Company.

Investment for each phase has been estimated at between $1.2 billion and $1.5 billion.

The three European companies had last year also managed to sign a four-billion-dollar contract with National Iranian Oil Company for exploration and extraction of oil and gas in Iran.