Total officially quits Iran’s biggest gas project
By Trend
Iranian Oil Minister Bijan Zangeneh said French energy giant
Total has officially withdrawn from Phase 11 of South Pars, one of
the country’s biggest gas projects.
“Total has officially quit its contract with Iran to develop Phase
11 of South Pars,” Zangeneh said on August 20, Fars news agency
reported.
Total – with a leading share of 50.1 percent in the development of
Phase 11 – announced two months ago that it was withdrawing from
the project.
Stressing that the terms of the contract with China’s CNPC and
Iran’s Petropars over the development of Phase 11 of South Pars had
not changed, the minister said a new firm would take over a leading
role held by Total in the project.
In July 2017, the NIOC (the National Iranian Oil Company) awarded
the project to the trio through a contract worth around $4
billion.
CNPC has now a 30 percent stake, while PetroPars holds the
remaining 19.9 percent.
The French energy company announced on May 16 that it may pull out
of South Pars deal in light of a decision by US President Donald
Trump to pull his country out of the 2015 Iran nuclear deal.
The United States reimposed stiff economic sanctions on Iran on
August 4, ratcheting up pressure on the Islamic Republic despite
statements of deep dismay from European allies, three months after
Trump pulled the US out of the nuclear deal.
A first set of reimposed US sanctions affect financial transactions
that involve US dollars, Iran's automotive sector, the purchase of
commercial planes and metals including gold.
A second batch of US sanctions targeting Iran's oil sector and
central bank are to be reimposed in early November.
Trump warned that those who don't wind down their economic ties to
Iran "risk severe consequences."
---
Follow us on Twitter @AzerNewsAz