ENERGY

Energy giant Total pulls out of gas development project in Iran

Total stated that the decision came after President Donald Trump’s announcement to withdraw from the JCPOA. (AP)

In a massive blow to Iran’s economy, French oil giant Total confirmed that it has not accepted any gas exploration commitments in the southern Pars field.

Total issued a statement on Wednesday on the future of its oil projects in Iran stating that the decision came after President Donald Trump’s announcement to withdraw from the JCPOA.

Total, together with the other partner Petrochina, executed the contract related to the South Pars 11 (SP11) project, in full compliance with UN resolutions and US, EU and French legislation applicable at the time,” the statement said.

“SP11 is a gas development project dedicated to the supply of domestic gas to the domestic Iranian market and for which Total has voluntarily implemented an IRGC-free policy for all contractors participating in the project, thereby contributing to the international policy to restrain the field of influence of the IRGC.”

The company added that it will not be able to continue operations unless it is given a project waiver by US authorities, with the support of French and European authorities.

“Total has always been clear that it cannot afford to be exposed to any secondary sanction, which might include the loss of financing in dollars by US banks for its worldwide operations, the loss of its US shareholders or the inability to continue its US operations,” they said.

British consortium to develop oil field in Iran

Iranian state TV is reporting that Tehran has signed an agreement with a British consortium to develop an oil field in the country’s south.

The agreement is the first between Iran and a key Western ally of the United States since Washington last week announced it will pull out of the landmark 2015 nuclear deal between Iran and Western powers.

Managing Director of Pergas International Consortium Colin Rowley, and Bijan Alipour, managing director of National Iranian South Oil Co., signed a preliminary deed on the partnership in the presence of British Ambassador Rob Macaire in Tehran on Wednesday night.

The project, if the agreement turns into a contract, will require more than $1 billion to produce 200,000 barrels of crude oil per day during the next decade in the 55-year old Karanj oil filed.

- With AP

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Last Update: Thursday, 17 May 2018 KSA 11:18 - GMT 08:18
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