The Strategist

Total stops operating in Iran

08/20/2018 - 15:48

The French oil and gas company Total stopped operating in Iran, Iranian Oil Minister Namdar Zangeneh said.

Laurent Vincenti
Laurent Vincenti
"Total officially left the South Pars project, Phase 11," Zangeneh noted. He recalled that the company announced withdrawal from the agreement more than two months ago.

Total acted as the leading participant in the consortium for the development of the world's largest gas field. The company’s share in the South Pars project was 50.1%. Another 30% belong to the Chinese CNPC, 19.9% are owned by the Iranian Petropars. The reserves are estimated at 13.8 trillion cubic meters of gas. Iran is leading a gradual development of the "South Pars", dividing the area of the field into 28 phases.

Earlier, Total announced its intention to leave the Iranian project in connection with the sanctions that the United States imposed against Iran after the unilateral withdrawal of the US from a nuclear deal with the country. The company will not be able to participate in the "South Pars, Phase 11" project and is forced to cease all operations until November 4.

In turn, the Iranian authorities gave Total 60 days to find a way around the US sanctions. Under the terms of the contract, if Total leaves the project, its share will be bought by CNPC.