Total halts $2 billion gas project in Iran

Lester Mason
May 16, 2018

As a effect, "Complete is not going to be able to proceed the SP11 challenge and should unwind all related operations earlier than four November 2018 except Complete is granted a selected challenge waiver by the United States authorities with the assist of the French and European authorities", the French firm mentioned in a press release.

Total (TOT -0.5%) says it may pull out of the South Pars 11 energy project in Iran following the USA withdrawal from the nuclear agreement with Iran.

On 8 May 2018, President Donald Trump announced the US's decision to withdraw from the JCPOA and to reinstate the USA sanctions that were in force before the JCPOA's implementation, subject to certain wind down periods.

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The company said on Wednesday that it was unable to proceed with a $2 billion project to develop the country's giant South Pars gas field.

Total said it could not afford to breach the looming USA sanctions against Iran due to its reliance on American banks and shareholders.

The company also confirmed its 5%/year average production growth target between 2016 and 2022, noting "various growth opportunities which have been captured by Total in recent months."Total also said its actual investment to date with respect to the south Pars contract is less than Eur40 million".

SP11 is the biggest proposed project between an global oil company and Iran and if Total withdraws, it will likely deal a significant blow to Tehran.

Other reports by Iphone Fresh

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