Thursday, 17 May 2018

French energy giant Total set to pull out of Iran gas deal without sanctions waiver

French energy giant Total is preparing to pull out of a billion dollar gas project in Iran in the face of renewed US sanctions.

Total said it will unwind operations by November unless sanctions are waived.

Washington is re-imposing strict sanctions on Iran, which were lifted under the 2015 deal to curb the country's nuclear ambitions.

German insurer Allianz and Danish tanker operator Maersk are also winding down their business in Iran.

Total signed a contract in 2017 to develop phase 11 of Iran's South Pars gas field, with an initial planned investment of $1bn (£750m).
"Total will not continue the SP11 (South Pars 11) project and will have to unwind all related operations before 4 November 2018, unless Total is granted a specific project waiver by US authorities with the support of the French and European authorities," the French oil and gas company said in a statement.

Following the international agreement three years ago to ease the embargo against Iran, companies began exploring trade and investment with the former isolated state.

BBC     News.

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