Total warns it would quit Iranian field without waiver

Business | Economy | Markets 5/16/2018, 6:52 PM
Total warns it would quit Iranian field without waiver

Total SA said on Wednesday that after spending €40 million on the South Pars 11 natural gas project, it would be forced to abandon before November 4 if it doesn't obtain legal assurances from the United States, "with the support of the French and European authorities."

The company explained that it wouldn't be able to put to risk its financing in dollars and by US banks, operations in the country and US shareholders. "In these circumstances, Total will not take any further commitment related to the SP11 project and, in accordance with its contractual commitments vis à vis the Iranian authorities, is engaging with the French and US authorities to examine the possibility of a project waiver," the statement said and added the target compound annual growth rate of production of 5% through 2022 wouldn't be affected.

The joint venture in phase 11 includes PetroChina via a contract signed by its parent China National Petroleum Corp., or CNPC. South Pars is the largest gas field in the world.

Breaking the News / IT

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